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Information for Homeowners
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Information for Builders
Hurricane Evacuation Zones
Public Comment Period
Flood Risk Appeals
Fact Sheets and Applications
How New Flood Hazard Maps Affect Insurance
Flood insurance is an important first step in protecting your financial
investment. 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. 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. The risk can
vary dramatically from neighborhood to neighborhood and within a neighborhood.
Remember, flood insurance is available for all properties, regardless of risk
designation, and is the only insurance that protects you from flood damage.
Learn more by visiting the
National Flood Insurance Program consumer website.
Zone Changes May Affect Flood Insurance Costs
Insurance costs may rise for some to reflect heightened risk. However,
property owners may be able to save money by purchasing insurance prior to map
adoption (anticipated Fall 2011). This process is called Grandfathering a flood
insurance policy (learn more on Grandfathering). Likewise, some property owners
may find their risk is now reduced and that they are eligible for an optional,
low-cost flood-insurance policy. Learn more by visiting the
Preferred Risk Policy website.
Flood Insurance Requirements and Options
When the new maps are adopted, some property owners' flood insurance
requirements will change. However, options exist that will allow property owners
to save money while still protecting their property.
If Maps Show…
These Requirements, Options And Savings Apply
Change from low or moderate flood risk to high risk
Flood insurance is mandatory. Flood
insurance will be federally required for most mortgage holders.*
Insurance costs may rise to reflect the true (high) risk.
Grandfathering offers savings. 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. An insurance agent
can provide more details on how to save.
Change from high flood risk to low or
Flood insurance is optional, but
recommended. The risk has only been reduced, not removed.
Flood insurance can still be obtained, at lower rates. Twenty-25
percent of all flood insurance claims come from low- to
Conversion offers savings. An existing
policy can be converted to a lower-cost Preferred Risk Policy.
No change in risk level
No change in insurance rates. Property
owners should talk to their insurance agent to learn their specific
risk and take steps to protect their property and assets.
*Flood insurance is mandatory
Benefits and Further Information About the National Flood Insurance
- Most Homeowner's insurance does not cover flood damage.
- There typically is a 30-day wait after the purchase of a flood
insurance policy before it becomes effective.
- 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.
- 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).
- 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. 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.
Where to Go For Further Information on
|Why Buy Flood Insurance ?
Buying flood insurance is the
best thing you can do to protect your home, business, family, and financial
security from a flood.
When you are a flood
- Flood insurance
compensates you for all covered losses.
- Coverage is relatively
- You can depend on being
reimbursed for flood damages, even if the President does not declare a Federal
- Your covered losses are
paid in full. You do not have to repay a
loan, as you might have to with many Federal disaster relief packages.
- You can count on your
claim being paid in the event of a flood loss because NFIP flood insurance is
backed by the Federal government.
- Your agent can help you
handle your claim quickly, so that you will not have to put your life on hold
if your property is damaged by a flood. You can even request a partial payment
immediately after the flood, which can help you recover even faster.