In most other instances, there is a 30-day waiting period before flood insurance goes into effect. Notify the insurance company or agent when the lender or servicer of a loan changes. Notification of a change of lender or servicer must be made to the insurance company or agent who wrote the flood insurance policy within 60 days after the effective date of the change. For more details, read The Mandatory Purchase of Flood Insurance Guidelines. Flood insurance and the mandatory purchase laws help protect your investments as well as your borrowers' against uninsured flood losses.
Floods happen all over the country.
Make sure you and your borrowers are protected from uninsured flood losses for their homes, businesses, and belongings by following these requirements. It's just good business.