The Flood Insurance Guru Blog
There are many different types of flood zones out there and can be confusing. We are going to discuss four types of inland flood zones. Zone X, D A, and AE.
A flood zone x is the lowest risk zone when it comes to flooding. While this zone has minimum risk about 30% of flooding does occur in this zone because of flash flooding. The video below gives a good explanation of a flood zone X.
The next flood zone we are going to discuss could be considered a land mine waiting to go off and that is a flood zone D. The reason for this this type of zone has not been mapped yet so the risk has not been determined. This could be a high risk for flooding or a low risk for flooding. The video below gives a good explanation what a flood zone D is.
The next type of flood zone is the A zone. These type of Special Flood Hazard Areas are subject to rising waters and are usually near a lake, river, stream or other body of water. Flood insurance is mandatory in all A zones because of the high potential of flooding. These type of zones may not have a base flood elevation sometimes making it difficult to get a property removed. Before ordering an elevation certificate it is recommended that you reach out to a flood insurance specialist like the flood insurance guru or a local flood plain manager to verify this. The video below also gives a good explanation of what a flood zone A is.
The next flood zone we will discuss is a flood zone AE. Outside the coast this area has the highest risk of flooding, it is also referred to as a 100 year flood zone. This zone also has has a base flood elevation which tells you how far above or below the flood line a property is. The video below gives a little more explanation of what a flood zone AE is.
If you have questions about this type of zones or are not sure what type of zone you are in we recommend reaching out to The Flood Insurance Guru to do a zone determination. You can click below to start the process.
There are major changes coming to the flood program in Toledo, Ohio October 1st. You will now have the option to cancel your NFIP flood policy and go to the private market if you qualify. This could save you up to 70% on your flood insurance and give you more coverage. Below you will see a bulletin from FEMA regarding this change.
National Flood Insurance Program October 1, 2018, Program Changes: A Summary The changes outlined in this bulletin apply to new business, renewals, endorsements, and cancellations that will become effective on or after October 1, 2018. 1. Cancellation Reason Code 26 for Duplicate Coverage under Non-NFIP Policy Beginning October 1, 2018, FEMA will establish Cancellation Reason Code 26 to allow cancellation of an NFIP policy when a policyholder has obtained a duplicate policy from sources other than the NFIP. The non-NFIP insurance coverage must be for building coverage on the same building that is insured by the flood policy being canceled. Cancellation Effective Date: The date the cancellation request is received by the insurer. Type of Refund: Pro-rata refund including ICC premium, Reserve Fund Assessment, and HFIAA Surcharge. The refund does not include the Federal Policy Fee and Probation Surcharge (if applicable). Cancellation Request: Must be received within the current NFIP policy year. Required Documentation: A copy of the non-NFIP policy’s declaration page and a statement from the mortgagee, if any, accepting the non-NFIP policy as the replacement. Years Eligible for Refund: Current year.
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You just found out your dream home is in a high risk flood zone and your are crushed, what do you do? You start calling around getting pricing but you are being told all these different documents are needed. So what exactly are these documents, well one is a zone determination and another is an elevation certificate.
A zone determination letter is a document that is normally provided by the National Flood Insurance program. This document tells exactly what flood zone the property is in, whether its a special hazard loan, and if the community participates in the national flood insurance program.
An elevation certificate is a document provided by a surveyor that shows the different elevations of the home, appliances, and area around the home. The elevations on this certificate will tell you whether this property can be removed from a special hazards home.
Understanding the difference between these is important when looking at a flood zone property because it can have a big impact on your ability to resell the home. There is also a big difference in pricing zone determinations should be free to you, if you are being charged just click her to get your free zone determinationwww.floodinsuranceguru.com. When it comes to elevation certificates these can cost between $400-$1000 because it requires a someone to come survey the property. Many times if someone already has flood insurance on the property you might be able to obtain the elevation certificate from which ever insurance company that holds the flood insurance policy.
If you have questions about how to get an elevation certificate or a zone determination we recommend reaching out to a flood insurance expert like Chris Greene at the Flood Insurance Guru.
Flood insurance can be scary especially with lack of educational resources. Generally when someone goes to get a flood quote they are told sorry we have to have an elevation certificate. The customer pays the $500 to get an elevation certificate and then the quote is through the roof.
In so many of these situations the money is wasted on the elevation certificate while in fact the customer could have been told the certificate would not change the rate. In some situations the certificate would improve the rate, however generally when looking at 500 year flood zones if there is no base flood elevation then the certificate will not change anything.
The reason is the point of the elevation certificate is to see where your home sits in relation to the base flood elevation, so if there isn't one there is nothing to compare it to. Also when looking at the private market compared to NFIP elevation certificates generally are not required.
This is one of the reasons why we recommend reaching out to the flood insurance guru to examine the situation first before wasting the money. Having a background in flood mitigation they can really analyze every situation for you especially in non coastal areas. They also serve all 50 states on flood education.
Floods can be devastating, and they are continuing to have a major impact on the California housing market. In the coming months major changes to the flood maps in the Sacramento area will have a major impact on homeowners.
Flood map updates are coming to the Sacramento area and consumers need to be prepared to know what their options are and what they can do. Many areas that are currently in low risk areas will be moved to high risk areas. This could have a major impact on not just your mortgage payment, but also the ability for you to sell your home.
When it comes to flood insurance there are many options out there for the consumer. It is important to understand the options so you know which one is right for you. First of all lets talk about the National Flood insurance program and the private market. First of all the National Flood Insurance Program also called NFIP is generally the program that most people are aware thats exists. Some refer to this as the government program this is generally available in most areas but can be the most expensive option if you are not working with a flood insurance expert like The Flood Insurance Guru. When it comes to this program maps can have a major impact. One option for consumers is what is called the grandfathering process this is when you can be put into a different flood zone based construction of the property and over factors. This can be very beneficial if done the right way.
Another way to have the flood zone changed in the NFIP is by having an elevation certificate completed that shows the elevation of the property is above the base flood elevation which removes it from a high risk flood zone. In many situations this certificate can be a waste of time and thats why we recommend reaching out to a flood insurance expert before having it done.
The other main program for flood insurance in Sacramento is the private flood insurance market. This program is not available to everyone, since it is a private insurance company they can chose what they want. This can be very beneficial to homeowners who are approved for it. In many situations the pricing can be up to 70% less than NFIP and also provide higher coverages. NFIP only insures up to $250,000 for dwellings before excess flood starts, while private flood can go up to the millions. A great benefit of private flood is that elevation certificates are not required for the high risk flood zones like they are for NFIP. So you are probably asking which program is right for me.
As mentioned before not everyone qualifies for each program. A lot of it depends on the typeof mortgage you have on the property. In most situations if you have a FHA or government funded loan then NFIP is going to be required. However if you have a loan like a conventional loan then the private flood market might be a great choice for you. Its very important to work with a flood insurance expert like Community First Agency that can show you how this will impact the sale of your home in the future. For further questions about flood insurance in Sacramento contact Community First Agency at (205) 451-4294.
Whenever you hear the word flood it can be scary especially if you own a business in Augusta Georgia. The flood of 1990 showed us that everything can be lost in an instant. Lets imagine you have an extremely profitable business. What would happen if that business could not operate for several months?
More than likely if you were not properly prepared the business would close and you would lose everything. This is exactly what floods can do to a business if you are not careful. There are two ways to buy flood insurance for your business, the right way and the wrong way.
Lets talk about the wrong way first. You open up your business and the building you are financing requires flood insurance so you buy exactly what the bank requires, which is to cover the loan. Great you have just helped the bank protect themselves but not yourself. So now if a flood occurs there is just enough coverage there to cover the loan amount which more than likely will not bring the building back to working order. So now you have a building you can not use in the mean time and generate revenue for your company. Also if you have rented this building out to other businesses you may have caused a hardship on there business which could expose you legally.
Now lets talk about the right way to buy flood insurance for your business in Augusta Georgia. First of all when it comes to the building we need to calculate the replacement cost to rebuild it, this way we can make sure it is covered for that amount. Next we need to look at the possibility of loss of business income. A good number to go off here is a six month reserve this way your business can continue operating when repairs are being made. This is probably the number one coverage that business owners leave off their flood insurance. The next area is to look at business property, if the things you use to operate your business each day are destroyed then you won't be able to operate. So when buying flood insurance take inventory of your business property to make sure everything is listed.
If you have rented out your building to other businesses then it is probably a good idea to have them sign a waiver stating business property flood insurance has been offered, this is a coverage that is usually just a couple hundred dollars and highly recommended. There are many others areas that business owners need to look at when purchasing flood insurance. We recommend reaching out to a commercial flood insurance expert like Community First Agency in Augusta at (770) 464-5024 to answer the many questions business owners have about flood coverage.
Alabama is a gorgeous state that has seen some major damage from natural disasters in the past. One of the major hidden risks is flooding.
Most people think the highest risk for flooding is in Mobile and Baldwin counties because of the coastal risk. While there is a great threat here, it is not the area that could be the most exposed.
Alabama has multiple rivers that run through it that can create some spectacular views and some very dangerous situations. Some of these rivers include the Tennessee River in the Huntsville, Madison, and Decatur area. Another area goes from NorthEast to SouthEast Alabama with the Coosa River. This river impacts areas like Gadsden, Pell City, and Rainbow City Alabama. Another area is the Black Warrior river that impacts cities like Tuscaloosa Alabama.
While these rivers pose some threat its the runoff to the smaller creeks during rainstorms that can cause the most danger. Many people say they don't understand why their home is in a high risk flood zone. Many times its the dried up creek next to their house that causes major concerns during heavy rain. Its getting these quick amounts of rain in a short amount of time that can cause the most damage. Vestavia Hills Alabama has had a major problem with this historically that has caused damage to multiple businesses and residences.
Many people say do I really need flood insurance and the answer is yes especially in the areas that get lots of rain during the spring months. These are also some the cheapest areas for flood insurance. To understand what your flood insurance options are in Alabama we recommend contacting a flood insurance specialist like Community First Agency at (205) 451 4294