Flood Policy Waiting Periods - From an Industry Expert on Home Insurance

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Flood Policy Waiting Periods - Flood Insurance

There is a 30-day waiting period from when you buy the policy to when coverage kicks in, if you are buying a FEMA flood policy without any loan transaction. For some private flood insurance providers, like Neptune, the waiting period is only 10-days

The Waiting Period Exceptions

There are some scenarios where the waiting period does not apply or is greatly reduced for FEMA flood policies:

  • 0 day waiting period: buying flood insurance when you are closing on your mortgage or refinancing your home loan 
  • 0 day waiting period: if you add additional coverage at renewal of your flood insurance policy, that kicks in immediately
  • 0 day waiting period: if there is a fire on federal land, and you purchase within 60 days of the fire containment. (in some cases)
  • 1 day waiting period: if the flood insurance map for your property's location was revised to a high-risk Special Flood Hazard Area within the past 13 months

If one lender buys your loan/mortgage from another lender, they cannot force you to purchase flood insurance or shop for new home insurance unless your home does not meet replacement cost requirements. If you are shopping for flood insurance, it's best to evaluate both private and public flood insurance options.

Hope this helps!

At your service,
Young Alfred