Is there a waiting period before a flood insurance policy becomes effective? Are there exceptions to the waiting period?
For new insurance policies, there is a standard 30-day waiting period; the policy becomes effective on the thirtieth calendar day from the date of the application and the presentment of payment, provided that the NFIP receives the application and payment within 10 days of the application date. The Congressional intent behind this statutory waiting period is to prevent the purchase of flood insurance at times of imminent flood loss. However, if the application for flood insurance is associated with loan activity, a requirement by the lender, or the remapping of the subject propertys community, then the 30-day waiting period does not apply. If the purchase of flood insurance is in connection with the making, extending, increasing, or renewing of a loan, then the flood insurance becomes effective at the time of loan closing, provided that the application and the presentment of payment is made at or prior to loan closing. In cases where a lender determines that flood insurance is required
