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Want the lender to pay for the flood policy at closing? Our new process can help.

Updated: Oct 26, 2023

If your client has a pending mortgage that requires compliance with the federal “mandatory purchase” regulation for flood insurance, your customer is often burdened with paying for the flood policy prior to closing. This causes additional out-of-pocket money for the buyer and can even derail the purchase of the home. has a solution!

If your client is closing on a loan for a new home purchase or a refinance, there is now a way for the flood policy to be paid at closing and escrowed by the lender. Here’s how it works:

· Complete an application and submit it for approval

· Print the pricing indication which now includes an effective date and an expiration date

· Send the policy indication to the lender to satisfy the requirement

· Lender pays at closing. Coverage is granted back to the closing date if payment is received within 14 days even though the policy may contain an inception date that is later in time than the closing date by several days*


This friction-free mortgagee enhancement is just one of the many advantages that sets NCIP apart. For example, the NCIP policy form is not an NFIP look-a-like as it allows for higher limits, optional basement coverage, ALE coverage, and much more.

Time is money, and this change should help save you a lot of time so you can start earning more today!

*The forgoing representations apply only to Natural Catastrophe Insurance Program personal lines policies and do not apply to commercial lines policies or to policies issued through Palomar Insurance Company. Payment must be received within 14 days of loan closing and is subject to valid quote/application on the date payment is received. See policy for definition and requirements.

Disclaimer: The content on this site is for general information purposes only. It is not intended to be relied on or used in place of professional advice. We do not endorse, assume responsibility for, or guarantee the accuracy of the content. All liability is expressly disclaimed.


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