![]() ![]() ![]() Where to Go For Further Information on Insurance: A property owner in a high risk area could save as much as 50% in premium payments by building just 2-3 feet above the base flood elevation. The higher up a property owner raises their structure above the base flood elevation in high risk areas (to a certain limit), the lower their insurance premiums will be.Historically, 20-25% of all flood claims paid out are on properties located outside of high risk areas, known as Special Flood Hazard Areas (SFHAs).Properties located in low- or moderate- risk flood zones (marked B, C, or X on the flood maps) can and still do flood but property owners may be eligible to purchase a flood insurance policy, a Preferred Risk Policy, at reduced premiums.There typically is a 30-day wait after the purchase of a flood insurance policy before it becomes effective.Most Homeowner's insurance does not cover flood damage.* Insurance note: Lower-cost preferred rate flood insurance policies (known as Preferred Risk Policies) are often an option in these areas.īenefits and Further Information About the National Flood Insurance Program: These properties are in an area of overall lower risk. ![]() These properties are outside the high-risk zones. Insurance note: High-risk areas are called Special Flood Hazard Areas, and flood insurance is mandatory for most mortgage holders. These properties have a 1 percent chance of flooding in any year - and a 26 percent chance of flooding over the life of a 30-year mortgage. Flood Risks and Flood Zonesįlood maps refer to areas of high, medium or low risk as "flood hazard zones" and the zones of highest risk as "Special Flood Hazard Areas." Risk LevelĪE, A, AH or AO Zone. Property owners should talk to their insurance agent to learn their specific risk and take steps to protect their property and assets. An existing policy can be converted to a lower-cost Preferred Risk Policy. Twenty-25 percent of all flood insurance claims come from low-to-moderate-risk areas.Ĭonversion offers savings. Flood insurance can still be obtained, at lower rates. The risk has only been reduced, not removed. An insurance agent can provide more details on how to save.Ĭhange from high flood risk to low or moderate riskįlood insurance is optional, but recommended. The National Flood Insurance Program (NFIP) has "grandfathering" rules to recognize policyholders who have built in compliance with the flood map or who maintain continuous coverage. Flood insurance will be federally required for most mortgage holders.* Insurance costs may rise to reflect the true (high) risk. These Requirements, Options, and Savings ApplyĬhange from low or moderate flood risk to high riskįlood insurance is mandatory. However, options exist that will allow property owners to save money while still protecting their property. When the new maps are adopted, some property owners' flood insurance requirements will change. Learn more about the Preferred Risk Policy. Likewise, some property owners may find their risk is now reduced and that they are eligible for an optional, low-cost flood-insurance policy. Insurance costs may rise for some to reflect heightened risk. Zone Changes May Affect Flood Insurance Costs Learn more by visiting the National Flood Insurance Program consumer website. Remember, flood insurance is available for all properties, regardless of risk designation, and is the only insurance that protects you from flood damage. The risk can vary dramatically from neighborhood to neighborhood and within a neighborhood. In accordance with the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, flood insurance is required for all structures located in a high-risk area, that carry a home mortgage loan backed by a federally-regulated lender or servicer. Over the life of a 30-year loan, a home in a high-risk area (known as a Special Flood Hazard Area) has about a 3 times greater chance of having a flood than having a fire. Flood insurance is an important first step in protecting your financial investment. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |