Anyone know anything about flood insurance? I just got a fine letter from my mortgage company telling me that my home has been added to the flood plain and that I must buy insurance. Just what I needed, another expense! Anyway my zone code is AE if that means anything. Any advice out there?
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Flood Insurance?
- Thread starter RacFocus
- Start date
StogieNinja
Derek | BoM June 2014
Go talk to your local homeowners insurance agent. They'll add it to your insurance plan.
Basically because you're now in a flood zone, the mortgage company is going to require you to carry flood insurance to protect their collateral.
Basically because you're now in a flood zone, the mortgage company is going to require you to carry flood insurance to protect their collateral.
I would have someone come out and asses/measure to make sure you are even in a flood zone. A couple hundred bucks could save you thousands. If you get proof your not in a flood zone you should be able to take the proof to your mortgage company. Good luck
SurpriseMVP
Mike
I sell insurance.
If your mortgage company now says your in a flood zone, you are.
they can and will force flood insurance on you and charge a hefty fee for doing so.
Your current insurance might be certified to do a flood policy for you, if not he will know someone who is. The only flood insurer is NFIP (national flood insurance program). I am certified, but will not write one. Huge PITA. Check with your city to see if they have a current elevation certificate for your property on file. If they do not you will have to pay a surveyor for one. In my state this runs anywhere from $650-$1000.
I do not remember the exact zones off hand. The higher risk the more the policy costs. Since the only flood insurance is provided by the government, the price is fixed. If you really get stuck shoot me a pm.
Mike
If your mortgage company now says your in a flood zone, you are.
they can and will force flood insurance on you and charge a hefty fee for doing so.
Your current insurance might be certified to do a flood policy for you, if not he will know someone who is. The only flood insurer is NFIP (national flood insurance program). I am certified, but will not write one. Huge PITA. Check with your city to see if they have a current elevation certificate for your property on file. If they do not you will have to pay a surveyor for one. In my state this runs anywhere from $650-$1000.
I do not remember the exact zones off hand. The higher risk the more the policy costs. Since the only flood insurance is provided by the government, the price is fixed. If you really get stuck shoot me a pm.
Mike
Thanks for the responses. I have started the contact with my homeowners insurance, but did this on a Friday night. Not expecting any response until Monday. What's annoying is they only gave me a month notice to have insurance in place. Seems like not a lot of time.
I sell a fair amount of flood coverage. Most flood policies have a 30 wating peorid but this is waived if coverage is required by a lender. An elevation certificate is a good idea with the new rates. A lot of company's participate in the NFIP's Write Your Own Program, the policy is on the companies paper, but is all underwritten by the NFIP.
The other thing is that there is no shopping for rates as all rates are set by the NFIP and will be the same no matter what company you go to. Ask your lender if the have a maximum allowed deductible. Excess flood coverage is available through the surplus lines.
The other thing is that there is no shopping for rates as all rates are set by the NFIP and will be the same no matter what company you go to. Ask your lender if the have a maximum allowed deductible. Excess flood coverage is available through the surplus lines.
Talked to the insurance agent who said that yes I needed to get an elevation certificate. After calling around, found a surveyor for about 350. My neighbor who is in the same boat paid a different company about 450 for his. Will get results in about 2 weeks. I hate homeownership!
RF, how long have you owned that property? I understand the basics of the flood insurance situation. But I'm curious about how re-designation of property works. If the governing bodies use less than conservative rates for warming/ice-melt/seal level rise, etc, it could mean tremendous increases. With the wildly wide range of speculative future sea levels, this could get quite contentious, I'd imagine.
Don't know if anyone cares, but I thought I would update this. Got my elevation certificate and my basement is 5 feet below the flood plain. Sent into to the insurance and found out my rates will be about 650 annually. The kicker, my next door neighbor who is in the same boat with a walkout basement probably exactly the same level as mine used a different surveyor and got a freakin exemption! So I am beyond pissed at this and am contacting my surveyor to see what can be done. Also contacted his surveyor to see if they might come to my place and try and get me an exemption.
Venting over. Time for a drink and a smoke.
Venting over. Time for a drink and a smoke.