Connecticut passed a bill requiring mortgage lenders, correspondent lenders, and brokers to provide a notice of flood insurance (notice) to borrowers. Under the bill, a mortgage lender, correspondent lender, and broker licensed under the Non depository Mortgage Lenders and Brokers Act must provide the borrower, in writing, with a “notice of flood insurance” (notice) not later than 10 days prior to the date of the closing in a mortgage loan transaction that notifies the borrower of the following:
- Standard homeowners insurance policies do not cover flood damage and related losses;
- Flood damage to property may occur regardless of whether the real property is located in a designated flood zone; and
- That the borrower may wish to consult a licensed insurance producer or surplus lines broker concerning the availability and benefits of obtaining flood insurance.
Also, the notice must be:
- Signed and dated by the borrower to acknowledge receipt of the notice; and
- Retained by the mortgage lender, correspondent lender, and broker.
Click to view the Connecticut Senate Bill No. 9: https://www.tenaco.com/wp-content/uploads/2025/07/CT-SB-9-06-11-25.pdf
