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Category: Flood Insurance Quote
Is flood insurance too expensive?
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Is flood insurance too expensive?
The news has routinely profiled homeowners bemoaning the costs of flood insurance or citing annual premiums that are certainly cringe-worthy.
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No Base Flood Elevation, What to do?
No Base Flood Elevation, What to do?
Recently, we helped a client who’s property was 1996 feet in elevation, yet was deemed in a flood zone after a torrential rain fall in the early 2000’s. Homes in the area were built allegedly to FEMA specs but after research there were minimal flood openings in the new home and it resides in a hilly area. What made this even more complicated was the fact that no Base Flood Elevation existed. As a result Section E of the flood elevation certificate had to be completed.
HAG and LAG
It is critical when your surveyor or engineer does this they understand the terms Highest Adjacent Grade (HAG) and Lowest Adjacent Grade (LAG). These terms are often misinterpreted and can end up leaving you below grade if incorrectly documented on the elevation certificate. When submitted for a flood quote you will get a rate that is totally excessive.
On the positive, completing section E gives you a little more leverage to work with your surveyor on getting the proper measurement to obtain a lower flood insurance rate.
See these helpful links. Elevation Certificates Short Course
FEMA Deadline for Louisiana Flood
As predicted Deadline extended 60 days
| FEMA Extends Deadline For Louisiana Flood Victims Another 60 Days
As we have noted in previous posts, flood insurance policyholders have deadlines they must comply with to ensure full and fair payments from their … |
Flood Insurance Maps Are Changing!
Flood Insurance Maps Are Changing!
As FEMA releases new flood maps thousands of homeowners will now zoned in flood areas. Some never thought they would be in a flood zone, but 100 year storm analysis shows they could, can and mostly like will be hit by a flood at some point in time. Many homeowners feel this is unfair because they never had a flood and if they have a mortgage, they will now be required to purchase flood insurance.
Below are links to stories of some of the most recent changes. The following considerations should be made by these towns when building new, first is to build more than just 2 feet above the base flood elevation. This will ensure long term protection an lower flood insurance rates. Second new permits for additions and updates to homes should have flood proofing considerations.
For homeowners the key thing is to be grandfathered into the flood insurance program to get lower flood insurance rates. Suggest getting a policy now. Consider higher deductibles to lower the cost and if you are skeptical then obtain an elevation certificate which may show your main floor well above the Base Flood Elevation (BFE)
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Diaz-Balart urges FEMA to adopt new flood maps
The current flood maps zoned Clewiston into a higher risk flood zone, crippling the community with much higher flood insurance premiums. In early …
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Changes coming to FEMA maps for flooding in Norfolk
NORFOLK, Va. (WAVY) — Flood maps have been redrawn for the City of Norfolk. So, do you need to buy flood insurance? FEMA has given Norfolk …
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Changes coming to Norfolk flood insurance rate maps
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Changes coming to Norfolk flood insurance rate maps
(AP) – Norfolk officials are urging residents to take notice of proposed changes to federal flood insurance rate maps in the wake of Hurricane Matthew.
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Feds to set private flood insurance requirements
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Feds to set private flood insurance requirements Established in 1968, the NFIP offers federal flood insurance to families in flood-prone areas. The NFIP also determines areas in which residents are …
This bill will increase the number of companies that can write flood insurance, providing more competitive rates and allowing high value homes to obtain higher limits of coverage.
Banks will now have to accept private flood policies. Companies that provide this coverage will have to comply with individual state insurance department rules.
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Rebuilding after Sandy.
Rebuilding after Sandy.
Consider the existing flood maps when rebuilding after Sandy.
After Hurricane Katrina may homes were rebuilt on the southern US coast and inner Gulf Coast areas. From Louisiana, to Georgia and Mississippi homes were raised to 15 feet above the base flood elevation where the ground level was 8 feet. Most governments and citizens thought a 7 foot height above the ground was enough and safe from future flooding. Homes were completed in 2008 and people in a flood zone of B had flood insurance rates reduced which was the expected result of raising or building to 15 feet at that time. Then in 2009 suddenly FEMA updates the flood maps in many areas!
Now the Base Flood Elevation (BFE) jumped to 16 feet putting everyone who just finished construction in 2008 under the required height to build. Who would have thought? Communities in these areas today are disputing these maps, however the maps are the maps and while the rates are grandfathered they still exceed a reasonable price averaging over $1,000 for at least $100,000 in building coverage with $50,000 in contents.
Fast forward to October 2016,
4 years after Sandy people are either finished or just getting finished with raising their homes. Rebuilding after Sandy communities from Nassau to Suffolk are using outdated flood maps showing lower flood levels. Many people in the coastal communities on Long Island have an average Base Flood Elevation of 8 feet. What most people don’t realize is the flooding from Sandy ranged on average from 8 to 10 feet. Homes are being raised and rebuilt only to the 8 feet plus 2 feet for a total of 10 feet requirement by local governments.
So is the 10 foot (BFE) correct? The answer is No. Local governments and politicians have closed door agreements with FEMA not to release the new maps. Why? Because imagine the cost and time of rebuilding if they did. Here is how the trickle down economics of this work..
- State and Federal programs have to pay out more in disaster recovery costs
- Cost of construction will be too high, forcing people who cannot afford this construction out of the area
- Homes will go vacant and have to be knocked down
- Houses not built to code compliance will loose considerable value because of
- Home Owners and Flood insurance cost
- High probability that flooding will happen again within the next 10 years.
- Tax revenue will be lost from these homes that loose value and go vacant, having a major impact on school funding and government funding for a long time to come.
- Homes already raised to the basic standard will be undesirable and subject to higher insurance rates.
Overall many mistakes are being made with the post Sandy rebuilding.
If we fail to rebuild correctly we will suffer the same fate as many who are now experiencing increased flood insurance rates in the southern coastal states. If FEMA releases new maps most of Long Island’s south shore will be subject to this.
Schumer, Gillibrand: Speed up Sandy flood claim probe
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Schumer, Gillibrand: Speed up Sandy flood claim probe … Homeland Security’s inspector general to speed up its investigation into the National Flood Insurance Program after allegations of mismanagement, …
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LA River flooding risk is higher that thought
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Eastside Review: LA River flooding risk is higher that thought; LAUSD rejects Eagle Rock charter …
So more property owners – especially in Atwater Village and Elysian Valley – will have to buy mandatory flood insurance, and developers might have …
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