- Format:Live Stream
- Education Type:BCU Webinars
- Line of Authority:N/A
- Language:N/A
- Credit Hours:N/A
Compliance with flood insurance regulations should be straightforward: determine where the structure is located (assuming it is insurable) and, if it lies within a designated flood zone, require flood insurance. Simple—right? If so, why do financial institutions continue to face so many violations and costly penalties?
The reality is that flood insurance compliance, while seemingly simple, is filled with complexities. Compounding the challenge, flood insurance regulations are among the few regulatory areas that mandate the assessment of civil money penalties when a pattern or practice of violations is identified.
Although the rules have been in place since 1996 (and the statutory framework even longer), examiners continue to cite numerous violations and fines. Flood insurance remains one of regulators’ principal areas of focus. Over the years, statutory changes and regulatory clarifications have further evolved the requirements. Fortunately, detailed Interagency Questions and Answers now provide guidance on many of these changes—but significant compliance challenges still remain.
In this full-day streaming event, we will focus on the most critical and problematic flood insurance issues, including:
- Flood determinations and disputes
- Flood mapping, including Risk Rating 2.0
- Monitoring requirements
- Contents coverage
- Private flood insurance policies
- Coverage amounts
- Force placement requirements
- Escrow rules and expectations
Special attention will be given to the issues that most often cause problems for lenders and those that are frequently cited by regulators as sources of violations and penalties.
Participants will also receive links to numerous helpful resources. Come prepared with your questions—this program is designed to help you fully understand the intricacies of flood insurance regulations and ensure your policies and procedures are accurate, compliant, and up to date.
What You'll Learn
What flood insurance rules actually cover, including the distinction between “covered loans” and “designated loans”
Key topics include:
- What is an insurable structure or an insurable mobile home?
- How do we deal with attached garages?
- Flood insurance in construction settings.
- Determinations, when you must do them, reliance upon previous determinations, disputes over their results, and the role of life-of-loan coverage
- Determining flood zone status yourself.
- Managing flood zone discrepancies and understanding when further action is (or is no longer) required
- Risk Rating 2.0 – what is it and what does it mean?
- Participating communities – what this means and how to find out.Understanding insurable value: how it is calculated and why it is not always 100% replacement cost value (RCV).
- Differences in the types of structures and impacts on coverage amounts – what about abandoned or worthless structures?
- Coverage Amounts, “Normal” situations, condo coverage (including the RCBAP), multi-structure, and construction situations.
By the end of this session, you’ll be better equipped to interpret flood insurance rules confidently and apply them accurately across a wide range of lending scenarios.
This session provides a comprehensive overview of flood insurance requirements and how they apply in real‑world lending scenarios. You will gain clarity on complex rules, common misconceptions, and practical decision‑making.
