Federal flood insurance policies are issued by licensed insurance agents and underwritten by the Federal Emergency Management Agency (FEMA) through the National Flood Insurance Program (NFIP). We provide documents required to certify a property's flood risk so you can obtain a federal flood insurance policy, set you insurance rates, or correct FEMA mapping errors.
Private flood insurance policies are underwritten by private companies and not the federal government. Lenders must accept private policies so long as they meet minimum standards. We provide data and reports to help insurers underwrite policies, and for property owners to better understand flood risk.
So you finally did it. You saved up enough money to put a down payment on your first home, and pay closing costs. You spent hours completing paperwork, and gathering documents for your mortgage lender.
In early 2016, FEMA began mailing out clear communication initiative letters to flood insurance policyholders with new policies effective April 1, 2016 or later, and/or renewal dates of October 1, 2016 or later. The purpose of these letters was to inform the policyholders of their current, re-mapped flood risk rating, and explain how that rating was assessed, as well as how it would likely impact what one would pay for flood insurance. The letters further explain how the property owner may reduce flood insurance premiums by obtaining an Elevation Certificate.
FEMA separated the letters into 7 categories, each defined by a letter, A-F. Your category can be found in the bottom right hand corner of your letter. The categories are as follows:
Who doesn’t want to lower the cost of… everything? Flood insurance is one of those things where consumers might feel a little helpless because most flood insurance is issued through the Federal Emergency Management Agency (FEMA) so the rates are what they are. First, find a knowledgeable agent that really knows the National Flood Insurance Program. Second, check out our list of the top 5 ways to lower your premiums.
We are asked this all the time and rightfully so. You are told you need to buy a flood insurance policy, which is separate from your homeowner’s policy. And then you are told you need a separate elevation certificate to calculate the proper premium. Or maybe you already have flood insurance and you were told getting a proper elevation certificate could lower your rising premium. So what does the elevation certificate cost?
The national average cost for an elevation certificate is about $600 and the range is about $169 to $2,000 or more. There are a lot of reasons elevation certificate costs vary, including: occupancy type, structure type, demand, location, timing, data, and quality.
This is a follow-up on our last blog about the conversations we have with property owners wanting to cancel their flood insurance policy. It’s a complex decision that affects the risk we accept and how we mitigate that risk. If you like facts and data, here’s some information that might help make a decision that’s right for you.
Homeowner’s insurance does not cover losses from flood disasters. This is the primary reason it’s a big deal. You need a separate flood insurance policy to be protected from flood disasters.