Summary: | Flood insurance is required for the life of a loan that is secured by improved real estate located, or to be located, in a special flood hazard area of a community participating in the National Flood Insurance Program. Often, an insurance policy lapses because the borrower does not renew it. Therefore, it is important for institutions to have adequate internal controls to ensure that borrowers maintain appropriate levels of flood insurance coverage for the term of the loan. |
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To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html . Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1102, Arlington, VA 22226 (1-877- 275-3342 or 202-416-6940).
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Additional Related Topics:
- Flood Disaster Protection Act of 1973, as amended
- FDIC Part 339 - Loans in Areas Having Special Flood
- Hazards
- Interagency Questions and Answers Regarding Flood
- Insurance (Financial Institution Letter 77-97)