You can reduce the cost of your Flood Insurance coverage
Accurate Flood Insurance rates
Flood Elevation Certificates Available
Experienced claims assistance
"You can reduce the cost of Flood insurance. As your mortgage is paid down you can carefully reduce coverage limits as well. When doing so get a clear explanation regarding the replacement cost value of your home vs actual cash value. The difference can effect the amount of reimbursement dollars when flood damages occur. Check deductibles and that your policy Primary Residence is set to Y or Yes for owner occupied single family homes. A Flood Elevation certificate (see below) may reduce your costs, but check with your agent first, in many areas you might be wasting your money."
If you have a federally backed mortgage on a home located in a high-risk zone, federal law requires you to purchase flood insurance to secure a loan. Also, if you've received a federal grant for previous flood losses, you must have a flood policy to qualify for future aid. Typically if you live in a designated flood plain, the terms of your mortgage require you to purchase flood insurance.
An EC documents your building’s elevation compared to the estimated height floodwaters will reach in a major flood. It is used to determine your flood risk and the cost of your flood insurance
For dwellings in a high-risk flood zones with letters A or V on a Flood Insurance Rate Map (FIRM)—the EC includes information needed to determine a risk based premium rate for a flood insurance policy. The EC shows the location of the building, Lowest Floor Elevation, building characteristics, and flood zone. It compares your building’s elevation to the Base Flood Elevation (BFE) shown on the map used for rating and determining the cost to cover your flood risk. The BFE is the elevation that floodwaters are estimated to have a 1 percent chance of reaching or exceeding in any given year. The higher your lowest floor is above the BFE, the lower the risk of flooding. Lower risk means lower flood insurance premiums.
For certain high-risk structures, an EC is required by an insurer as a condition for issuing flood coverage. If your building was constructed before your community’s first FIRM (Flood Map) became effective (known as pre-FIRM) and you are eligible for a subsidized rate, you do not need an EC to purchase coverage. However, subsidized rates for pre-FIRM buildings are being phased out through annual premium increases. Full-risk rates are specific to the property, and an EC will be needed to calculate the property-specific full-risk rate. Depending on your
elevation, the full-risk rate could already be lower than the subsidized rate.
ECs are not required and are not used for rating in moderate- to low-risk areas (Zones X, B, and C), undetermined risk areas (Zone D), or certain high-risk areas eligible for other subsidies (e.g., Zones AR and A99). The property will remain eligible for the NFIP grandfather procedure if continuous coverage is maintained.
A new $10,000 deductible is now available for residential properties. If you selects this $10,000 option and want to buy both contents and building, then the same amount must apply to both building and contents coverage (ie. $10,000 building coverage deductible & $10,000 contents deductible). Be sure to check with your mortgage carrier before requesting higher deductibles.
A “primary residence” is one that will be lived in by you or your spouse for more than 50 percent of the 365 days following the policy effective date. You must now validate primary residence eligibility annually otherwise a costly surcharge will be applied to your policy.
To validate, you can submit one of these: a driver’s license, an automobile registration, proof of insurance for a vehicle, voter’s registration, documents showing where your children attend school, or a Homestead Tax Credit Form for Primary Residence. Or if none of those documents are available then a signed and dated statement (available from our office).
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