Northeastern Louisiana property owners who hoped to bypass the 30-day waiting period for flood insurance by taking out second mortgages on their homes or camps won't be covered under the current Mississippi River flood, the Federal Emergency Management Agency said.
In an email to The News-Star, FEMA said the insurance won't take effect if it was bought after the flood event began.
"... The policy must be purchased and in effect on or before the date the flood actually started or flooding is in progress," FEMA wrote. "In other words, although there may not be a (30)-day waiting period, such as when a flood insurance policy is purchased in connection with the making, increase, extension or renewal of a mortgage loan, the policy cannot go into effect after flooding has begun."
FEMA recommends discussing options with their insurance agent or company.
But bankers said that's counter to what they were told by FEMA officials during a conference call at the Louisiana Bankers Association convention this month.
"FEMA told us that even with a potential pending threat of flooding, the law allows property owners to secure immediate coverage on a new loan as soon as the loan is closed," Richland State Bank President Jerome Vascocu said.
Harvey Hales, a Shelter Insurance agent in Monroe, said the experts with whom he conferred also said the waiting period could be bypassed with a second mortgage.
"I think (FEMA) is making it up as they go along," Hales said.
But Hales did say he believes closing the loophole is fair.
"It's appropriate and makes sense that you can't buy insurance after a flood event has already started," Hales said. "I just wish they had made it clear from the beginning."
I thought all and all this was going to die just like other things this world put out. In orlando almost all the houses have a still loan on them no one owns any thing any more and its a shame why is this going on
In an email to The News-Star, FEMA said the insurance won't take effect if it was bought after the flood event began.
"... The policy must be purchased and in effect on or before the date the flood actually started or flooding is in progress," FEMA wrote. "In other words, although there may not be a (30)-day waiting period, such as when a flood insurance policy is purchased in connection with the making, increase, extension or renewal of a mortgage loan, the policy cannot go into effect after flooding has begun."
FEMA recommends discussing options with their insurance agent or company.
But bankers said that's counter to what they were told by FEMA officials during a conference call at the Louisiana Bankers Association convention this month.
"FEMA told us that even with a potential pending threat of flooding, the law allows property owners to secure immediate coverage on a new loan as soon as the loan is closed," Richland State Bank President Jerome Vascocu said.
Harvey Hales, a Shelter Insurance agent in Monroe, said the experts with whom he conferred also said the waiting period could be bypassed with a second mortgage.
"I think (FEMA) is making it up as they go along," Hales said.
But Hales did say he believes closing the loophole is fair.
"It's appropriate and makes sense that you can't buy insurance after a flood event has already started," Hales said. "I just wish they had made it clear from the beginning."
I thought all and all this was going to die just like other things this world put out. In orlando almost all the houses have a still loan on them no one owns any thing any more and its a shame why is this going on
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