Ask Your Insurance Agent about Reducing Your Flood Insurance Costs.
Mandatory Insurance is a federal lending policy…
Congress mandated federally regulated or insured lenders to require flood insurance on properties that are located in areas at high risk of flooding.
Residents of High-Risk Areas
Homes and buildings in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. These areas have a 1percent or greater chance of flooding in any given year, which is equivalent to a 26 percent chance of flooding during a 30-year mortgage.
Lenders must require flood insurance when… (all of the following are present)
- A lender makes, renews, extends, or increases a loan
- That collateral is or will be located in a high-risk flood area depicted on a currently effective flood hazard map
- That loan is from a federally regulated or insured lender
- The loan is secured by improved real estate (a building or personal property within a building)
- The loan term is at least for one year and the loan amount is at least $5,000.
- The community participates in the National Flood Insurance Program
Important questions to ask about insurance…
Due to recent changes in flood insurance rates, it is more important than ever to understand the policy your agent sells you. Ask your agent these questions to help you get the policy you need to protect your investment, satisfy mandatory purchase requirements and pay only for what you need:
- How much will my next flood insurance premium be?
- Am I affected by recent changes in the National Flood Insurance Program?
- What flood zone do I live in?
- What is my property’s flood risk?
- Can an Elevation Certificate lower my rates?
- How do I get an elevation certificate?
- Is flood insurance mandatory for my property?
- Why does my lender require flood insurance?
- How much am I required to buy, I do not owe 250,000.00?
- Do I qualify for a Preferred Risk Policy?
- What is the community rating system, I heard that belonging could reduce my rate, how?
- Does my community participate in the NFIP Community Rating System (CRS)?
- Does my community’s CRS rating mean that I qualify for a CRS rating discount?
- What is covered in the rest of the house?
- What is covered in my basement?
- How will my premium costs be affected if I get Building Only, Contents Only, or Building & Contents?
- How will my premium costs be affected if I choose a higher deductible?
- Are there additional expenses or fees I should be aware of?
- What is ICC and when can I use it?
- What is Replacement Cost Value and Actual Cash Value?
- What is the difference between sewer and sump pump coverage vs flood insurance
- What happens when I sell my home?
- Can I see the flood maps?
- How do you determine if I am in a SFHA area?
- Is coverage for other structures (e.g.fencing, garages) covered under flood insurance policy?
- What Property is covered?
- I am not in a flood SFHA now, can that change?
- What other coverage’s are there in this policy?
What exclusions should I know about?
How does this affect my home owner’s policy?
Can I be dropped if I make a claim?
I live in a condominium, what coverage would I need?
How can I reduce my premium?
- Debris removal
- Loss avoidance