CAI-NJ Jan.2020 (w) (2)

FLOOD INSURANCE... from page 32.

“Flood insurance rates are increasing and will continue to do so.”

wash them away. After the availability of flood insurance, much larger, fancier structures began to replace these modest structures. This would not have been possible save for the underpriced Federal Flood Insurance Program. Vacation home mortgages heretofore had not been available due to the risk for the lender. Federal flood insurance expanded the amount of mortgage money available for flood exposed properties. Briefly in 1981, insurance premium increases resulted in fewer insurance policies being purchased or renewed. In 1983 coverage was modified in an attempt to reduce the amount of smaller losses including higher deductibles and limited coverage on property in basements. But this did not solve the program funding problems. Nearly every year there is funding gridlock in Washington, D.C., to amelio- rate the problem. This is unlikely to change. If you made it this far, there are three categories of read- ers of this article:: (1) condominium association managers, directors and owners, (2) homeowners association manag- ers and directors or (3) homeowner in an HOA.

pick the right tools for your next project. With community association lending expertise like ours, you’ll get the job done right. Condominium Associations Flood insurance rates are increasing and will continue to do so. There is no choice. Mortgage companies are increasingly vigilant about whether flood insurance is in place because they are forced to do so. Mortgage com- panies have to err on the side of safety (the Feds audit their files, so they have to be) and frankly many of their processors aren’t familiar with flood maps and the like so they make you prove a negative if a property is borderline. This is commercial private insurance, not through the NFIP. For structures in a flood hazard area, separate NFIP insurance through their Residential Condominium Association Building Association Program (RCBAP) can be procured. It needs to be said that cooperatives are

take that to the bank.

Matthew Driscoll VP/Regional Account Executive 443-866-9076 Toll Free 866-800-4656, ext. 7561 matt.driscoll@mutualofomahabank.com

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