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.