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There is normally a 30-day waiting period before flood insurance goes into effect. There are two basic exceptions:

  1. If the initial purchase of flood insurance is in connection with the making, increasing, extending, or renewing of a loan, there is no waiting period. The coverage becomes effective at the time of the loan, provided the application and presentment of premium are made at or prior to loan closing.
  2. If the initial purchase of flood insurance is made during the 13-month period following the revision or update of a Flood Insurance Rate Map for the community, there is a 1-day waiting period.
    In addition to the two basic exceptions, FEMA has issued a policy decision specifying the following four exceptions:

    1. The 30-day waiting period will not apply when there is an existing insurance policy and an additional amount of flood insurance is required in connection with the making, increasing, extending, or renewing of a loan, such as a second mortgage, home equity loan, or refinancing. The increased amount of flood coverage will be effective as of the time of the loan closing, provided the increased amount of coverage is applied for and presentment of additional premium is made at or prior to the loan closing.
    2. The 30-day waiting period will not apply when an additional amount if insurance is required as a result of a map revision. The increased amount of coverage will be effective at 12:01 a. m. on the first calendar day after the date the increased amount of coverage is applied for and presentment of additional premium is made.
    3. The 30-day waiting period will not apply when flood insurance is required as a result of a lender’s determining a loan that does not have flood insurance coverage should be protected by flood insurance. The coverage will be effective upon the completion of an application and the presentment of payment of premium.
    4. The 30-day waiting period will not apply when an additional amount of insurance offered in the renewal bill is being obtained in connection with the renewal of a policy.

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