The final rule is an improvement over the original proposed rule, R.J. Lehmann, R Street director of finance, insurance and trade policy, told Best’s News Service.

“It makes clear that policies issued by surplus lines providers are covered under the definition of ‘private flood insurance,'” he said. “That’s important, because the overwhelming majority of private flood coverage currently being written is through the surplus lines market.”

The rule also clarifies that “lenders have discretion to accept policies that don’t precisely match NFIP terms on things like deductibles, so long as they provide sufficient protection to the lender,” he said.

Future guidance may be needed, Lehmann said.

“And it would be a big help if more states followed the lead of Florida in establishing a regulatory framework for an admitted market private flood product,” Lehmann said, “but overall, this should help ease the way for companies that have been interested in entering this space and for lenders who might otherwise be cautious about accepting private flood placements.”