Things To Know….
The most important thing to know is this…flood is not covered on your home insurance policy. Unlike homeowners insurance, there is no competition between companies. Flood insurance is regulated by the National Flood Insurance Program and administered through FEMA (Federal Emergency Management Agency). No matter what insurance company services the policy, insurance rates are the same. Here are a few other interesting things to note:
- Unlike other insurance policies, if you buy a home and the prior owner carried flood insurance, you can transfer the insurance policy to the new owner.
- If you decide to purchase flood insurance, it will take 30 days for coverage to go into effect,unless it is for a home closing and required by your lender.
- If you are in a flood zone X, you may qualify for the preferred program and rates start at $129/year.
- If you are in any other flood zones (A, AE, etc.), you may be eligible for lower rates if you can provide a flood elevation certificate. The cost of a flood elevation certificate is around $250, but you can use a prior flood elevation if you can “get your hands on it”.
- Flood zones can change if your area is resurveyed and/or the maps are revised, but If you currently have a flood policy or if you take over the policy from the prior homeowner, you may qualify for “Grandfathering”.
FLOOD INSURANCE GLOSSARY
Flooding – – A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder’s property) from one of the following:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation or runoff of surface waters from any source
- Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.
Flood Zone Determination – This is a certificate that we can quickly provide to you which indicates what flood zone your home is located in. It is usually the first step in getting a flood insurance policy. Not sure what flood zone your home is in? Check here.
Flood Elevation Certificate – A certificate that verifies the elevation data of a structure on a given property relative to the ground level. The Elevation Certificate is used by local communities and builders to ensure compliance with local floodplain management ordinances and is also used by insurance agents and companies in the rating of flood insurance policies.
Flood Zone – A geographical area shown on a Flood Hazard Boundary Map or a Flood Insurance Rate Map that reflects the severity or type of flooding in the area.
Grandfathering- An exemption based on circumstances previously existing. Under the NFIP, buildings located in Emergency Program communities and Pre-Flood Insurance Rate Map buildings in the Regular Program are eligible for subsidized flood insurance rates. Post-Flood Insurance Rate Map buildings in the Regular Program built in compliance with the floodplain management regulations in effect at the start of construction will continue to have favorable rate treatment even though higher base flood elevations or more restrictive, greater risk zone designations result from Flood Insurance Rate Map revisions.
Do you have additional questions? Visit the National Flood Insurance Program website at www.floodsmart.gov.