FHA Issues Private Flood Insurance Rule


On November 21, the Department of Housing and Urban Development (HUD) issued a final rule allowing private flood insurance for FHA-insured mortgages in special flood hazard areas. Read NAR’s release applauding HUD’s new rule. 

Previously, only National Flood Insurance Program (NFIP) policies were allowed for FHA loans. However, a broad NAR coalition helped persuade HUD that:

  • many private insurers now offer higher quality, lower cost options than the NFIP, and
  • FHA borrowers should not be excluded from options which have been available to more conventional borrowers since 2019.

Please note that while the new HUD rule will significantly expand the flood insurance choices available to FHA borrowers, not all private policies will meet its definition of private flood insurance.  NAR will continue to work with Congress and the Administration to expand that definition as part of a long-term NFIP reauthorization and reform measure next year.

Download the Coalition’s Letter to FHA

Download NAR’s Comment Letter to FHA



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Mike McNamara

Mike McNamara

A Las Vegas Realtor since 2008. Mike has a wide range of knowledge around all things Las Vegas.

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