"Millions of homeowners will be able to buy flood insurance from private companies instead of the government under a policy proposed by the Federal Housing Administration.
The regulation would enable roughly 8 million homeowners with FHA-insured mortgages to buy private flood policies, which can have lower premiums and higher coverage limits than those sold through the National Flood Insurance Program (NFIP).
It could also increase the number of people with flood insurance, which is not included in standard homeowners' coverage and must be purchased as a separate policy.
"Our proposal would expand the options for obtaining flood insurance rather than continuing to lock in borrowers to one federal option without any ability to comparison shop," FHA Commissioner Dana Wade said in a statement."
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