Flood insurance, water damage, and water backup can be confusing. When do you have coverage and Do you need additional coverage? These are things that you need to know. We hope to give you the answers to these questions in this blog. To get a good understanding you want to put yourself in the shoes of different scenarios.

So let's look at if you do have water in your home.

So you come down stairs to find out you have 6 inches of water in your living room and kitchen.

Where did it come from?

In your insurance going to cover the damage?

These are usually the first two questions property owners ask when this happens.

Today we want to talk about some different types of coverage when you have water in your home.

1. Flood insurance
2. Water back up

Let's look at flood insurance first. How does FEMA define flood?

According to FEMA a flood is when A general and temporary condition of partial or complete inundation of normally dry land areas from: (1) The overflow of inland or tidal waters; (2) The unusual and rapid accumulation or runoff of surface waters from any source.

Water back up is when water backs up into your home normally as a result of a sewer or septic back up.

So now that we have an understanding of what flood insurance and water back up are let's discuss some water damage scenarios to help you understand if you are covered.

We want to look at 3 scenarios

1. Water leak from a dishwasher
2. Water coming in your home
3. Water coming from toilet

Remember that water you found in your living room, well lets talk about how it possibly got there?

Come to find out it looks like your dishwasher had a broken hose over night.

So what coverage would apply in this scenario?

Well depending on the type of coverage you have on your home insurance policy coverage should kick in here. While the home insurance might cover it, it still may not fall under the water back up portion.

One thing is for sure and that is that flood insurance would not cover this damage.

Let's look at a different scenario lets talk about the fact that you discovered water is coming into your home. It seems that the water is coming from the doorway. All the rain that has been received recently along the Mississippi River has caused some local creeks in the area to overflow their banks.

You look out the window to look at your yard but there isn't a yard. There is just a small river running in your backyard. So are you covered?

You might be covered and you might not? If you don't have flood insurance then you definitely are not covered. If you do have flood insurance then one of two things need to have happened in order to be covered.

Either 2 acres or more need to be inundated with surface water or 2 properties or more need to be inundated with water. So let's say you leave in a neighborhood that has some new development. As a result of that development water has been redirected towards your home. Your property seems to be the only impacted then more than likely flood insurance will not pay out.

Let's take a look at the last scenario. You come downstairs to discover this water and you started walking around on the soaked carpets. You walk into the hall bathroom to discover that the toilet is still overflowing. Not only do you have water throughout your home but now you have the smell of sewage water, yuck right.

This is a prime example of where water back up coverage on a home policy normally comes into play.

Water back up is not normally included on many home insurance policies. So its definitely something you want tom review with your insurance agent when setting up your home insurance policy.

We have discussed just three of many scenarios where water can come into your home. As you can see there can be a different type of coverage for every scenario.

This is why is so important that your review your flood insurance with a flood expert like The Flood Insurance Guru and your home insurance with a home insurance expert.

So maybe you have more questions about water damage in your home? What are your options for flood insurance? How to prevent water from coming into your home? Then make sure to visit our website Flood Insurance Guru. You can also check out our daily flood education videos on our YouTube channel or our Facebook page Flood Insurance Guru.

 

 

 

Building a house can be an exciting time and stressful one. There are many things to do like finding the right lot, finding the right builder, and staying on budget.

It's not a shocker than when building a house one thing most people don't think about is flood insurance.

We are going to discuss some things you can do to make sure you don't get blind sided.

We are going to discuss

1. Verifying the flood zone
2. Picking the right foundation
3. Flood insurance options

So you have decided to finally build that dream home in lake country on Lake Oconee in Madison or Eatonton Georgia. You have found the perfect lot and now you just need to put it under contract. This is normally the area where so many Lake Oconee property owners get themselves in trouble.

When looking at purchasing the Lake Oconee lots you want to verify what type of flood zone the property is in? It's not unusual for the property to be in a couple different flood zones because of the way FEMA does their flood maps.

We are going to look at 3 types of flood zones and what they mean for your lake property.

1. Flood Zone X
2. Flood Zone A
3. Flood Zone AE

Flood zone X is the best case scenario for your Lake Oconee property. This zone is considered a minimal risk zone. While flood insurance is not required in this zone it it is recommended as almost 30% of flooding occurs in these areas. I mean look at Nathan Estates in Muscle Shoals Alabama the entire neighborhood flooded in 2019 even though it was a minimal risk zone. 80% of flood of victims during hurricane Harvey did not have flood insurance because they were told they were in a low risk flood zone. The video below gives you a better understanding of flood zone X.

Now let's look at flood zone A this zone can be a little confusing. While this is whats considered to be a special flood hazard area where flood insurance is required some of the risk is undetermined. Much of flood zone A in the Madison Georgia does not have a base flood elevation.

This is the elevation FEMA believes flooding will come to so there is not one you can imagine it can be a little bit of a hidden risk. The video below gives a better understanding of flood zone A.

Now lets look at the last flood zone and the one that would more than likely impact your Lake Oconee property. That is flood zone AE this is considered to be the highest risk zone outside of coastal zones. Unlike flood zone A flood zone AE does have a base flood elevation determined. The video below gives a good understanding of flood zone AE.

Now that we understand the different flood zones in Madison and Eatonton Georgia and what is required let's look at foundation types.

Foundation types on a Lake Oconee property can have a big impact on flood insurance. The more negative your foundation is compared to the base flood elevation the higher your flood insurance premiums can be. This is one reason it is recommended to build homes in this area with above grade crawlspaces.

By putting in flood vents many times you can help minimize the damage to your home through mitigation and lower your flood insurance premiums at the same time.

Installing these flood vents in the Madison or Eatonton Georgia area has some requirements. In order to get the right credit they have to have at least 2 vents on opposite walls of the building and be 1 square inch for every total square foot.

So if you have a 2000 square foot house you need 200 square inches in flood vents.

There are two types of flood vents available. You have engineered and Non engineered flood vents. While engineered will last you much longer keeping your maintenance low FEMA doesn not recognize these separately.

So we have talked about the flood zones and foundation types on the lake homes along lake Oconee in Madison and Eatonton Georgia. What about flood insurance options?

There are two flood insurance options available in the Madison and Eatonton Georgia area. You have the National Flood Insurance Program and you have private flood insurance.

The National Program is the most common program that most people know about. This program is administered by the federal government. They offer coverages up to $250,000 on the building and a $100,000 on contents for residential properties. This program is generally the more expensive option in the special flood hazard areas.

Private flood insurance on the other hand offers some pricing and coverage advantages. Let's say that home you are building is a million dollar home then with a private flood insurance policy you maybe able to get up to a million dollars on the building. On contents you can get more than the $100,000 as well but normally not until the property is walled and roofed.

As you can see there can be a lot of surprises when building a home in a flood zone in the Lake Oconee area. You have to think about where on the lot you want your home, what flood zone it will be placed in, and what the foundation type you want it to be? These things could all have a big impact on the resale value of the home.

So if you are building a home in the Lake Oconee area or any other area and have questions about flood insurance then make sure to visit our website. You can also check out our daily flood education videos on our YouTube channel or Facebook page.

Remember we have an educational background in flood mitigation so we are here to help you understand your flood risk, your flood insurance, and helping you mitigate your property to keep your flood premiums low.

 

 

We all know how it feels to be pulled in 10 different directions and to wear 10 different hats. Have you ever thought that maybe wearing all those hats is holding you back from wearing the best hat?

The insurance industry can be a demanding industry especially as an agency owner. You have responsibilities for payroll, marketing, sales, carrier relationships, and product education. Trust me after being an agency owner for almost 5 years I have struggled with all of this.

Educating yourself on 20 different insurance products can be demanding and stop you from being truly great on certain products. After 10 years in the property and casualty industry we discovered that being good at 30 things was stopping us from being great at 3 things. These three things are

1. Flood insurance
2. Flood education
3. Flood mitigation

So in 2020 we made the tough decision to only focus on those things we came to this decision for a few reasons.

1. Educational background
2. Customer experience
3. Customer service
4. Passion
   

Our educational background is in emergency management with a focus in hazard and flood mitigation. Our goal has been to use this educational background to create unique customer experience where we almost have flood questions answered before they were asked by using videos, blogs, and podcast as a knowledge based system.

 

In reviewing this we also discovered if we continued to try to do everything for everyone it was going to create bad customer service and we could not provide the service to everyone for what they deserved.

The last thing we looked at was our passion to create hope in peoples lives through flood education.

If you caught our recent blog on learning disabilities then you would know the passion we have for the flood insurance industry and the passion we have to help people. One reason is the horrible customer experience we had about 10 years ago on a flood transaction.

I went to buy a house in Monroe Georgia on Stewart Lake Road. It was the perfect house sitting on about 2 acres. We got about 2 weeks before closing and the lender discovered that the property was in a special flood hazard area. The realtor said yes the previous 4 contracts fell through because of it. The lender informs me the flood insurance will be $3000 a year and it will make the house out of our budget.

Have you ever had to tell your spouse that they are not going to be getting their dream home?

It feels like a punch in the gut.

I couldn't accept no as an answer without further research. So it was off to the Walton county courthouse to do some research. I discovered the home was built in 1982 and we were able to show that the home was built within flood plain management guidelines at the time. As a result the flood premium was $350 not $3000.

So I took this updated information to the mortgage company and the realtor, they were both shocked.

They said how did you do that?

I explained to them what my educational background was in and some laws I understood that some did not. The realtor mentioned they could have sold this property for about 20% more and in half the time.

When this happened I told myself I never want a buyer, realtor, or mortgage company to have that kind of experience again.

You see outside of coastal areas most insurance agents try to avoid flood insurance. One reason is it can be very detailed with constant changes and the other reason is might not come up that often.

So while everyone else was running from it we wanted to run to it, so everyone could have their flood insurance questions answered.

In 2019 we did 365 flood education videos in 365 days, 150 flood blogs in 150 days, and a 100 flood podcast in 100 days.

We traveled the country creating this content and speaking with flood victims. The one common question that always came up was I wish I knew flood insurance was available or my insurance agent told me flood insurance was not available in my area.

After spending the year doing this we discovered the need for constant flood education, making sure everyone was aware of the flood insurance options, and how to mitigate their property against flood risk.

We knew this would mean addressing every single flood issue across the country and studying the FEMA manual at least an hour a day. However in order to do this our time could not be spent on other insurance products.

In order for this mission to be successful we had to know every single thing about flood education and flood insurance.

So in 2020 we decided to stop offering those other insurance products at The Flood Insurance Guru. Now don't get me wrong there is nothing wrong with an insurance agent that offers all these different products. Its great to be a one stop shop but we knew it wouldn't work with for us with flood being so confusing.

When does flood insurance pay out?

When can you cancel your flood insurance?

What are the flood insurance options?

There are 500 more questions that could be asked and answered differently based on the scenario. It's important that people know the answer to these questions before they lose everything or are facing foreclosure because their flood insurance has skyrocketed.

So if you are looking for auto or home insurance then we aren't a good fit for you, but we can put you in touch with someone who is right for you.

If you are looking for flood insurance, flood education, or flood mitigation then I promise that no one will give you more free resources to understand these things then we will.

So if you have questions about anything flood related then make sure to visit our website. You can also check out our daily flood education videos on our YouTube channel or Facebook page Flood Insurance Guru. You can also tune into our daily flood podcast.

 

 

This blog has been in the works for almost 39 years. I have sat down to write it many times but honestly could never get through it. I tried to put it into a video and a podcast but starting crying each time.

I always said that one day I would write a book and tell my story. However good friends and industry thought leaders like Jason Cass of Agency Intelligence have really motivated me to tell this story now.

You may ask why now?

I want you to know the real me and how a pair of educators and a learning disability created The Flood Insurance Guru many years ago. If you are looking for tips on flood insurance then this blog might be a disappointment to you.

However if you want to learn why we have the passion to help people with flood insurance and flood education across the country then I think this will be the blog for you.

If you want to learn about the adversity we faced in getting here and how we used that adversity to build a national brand in less than 12 months then this blog might be for you.

Enough of that, let's talk about growing up with a learning disability. At the age of 6 I was diagnosed with A.D.D. and A.D.H.D, you know these days it seems everybody was diagnosed with this disorder. However it was a different story 30 years ago.

Anybody that has a learning disability knows that they generally don't fit in that same box as everyone else. This can be frustrating to a kid and many kids act out because of it. Some people say "man that kid is a really bad kid" I know because they said that about me. However not fitting in that box can cause behavior problems because at the young age of 6 many children just don't know how to communicate.

When I was diagnosed I was in Ms. Zeiglers 1st grade class at Martinez elementary school in Augusta Georgia. I had passed first grade and it was time for me to move on to Mrs. Stencil's 2nd grade class.

However the teachers and my parents both could tell I wasn't ready. You see being diagnosed in the middle of the year came with it alot of adjustments. The medications had to be balanced properly, and there was alot of them. I had an average of 3 visits to the nurse everyday just to take my medications.  Then there was learning that I didn't learn the way every other kid did.

My parents had to make a very difficult decision.

Do we hold him back or let him move forward. Everyone could tell if I moved forward that I would be even further behind. So I would repeat the 1st grade again in the same class. Mrs. Zeigler was absolutely wonderful in working with me and my parents to get me ready for my next steps. I had anger towards my parents for this for many years. Why would you put a child through this punishment? It wasn't until 15 years later that I appreciated what they had done so many years before.

Back to the second year of 1st grade. That school year I would face some of my toughest battles. You don't know what adversity is until you walk down the halls with your first grade class while the other kids in the hall call you stupid because you were still in the same grade. Facing that everyday will put a mental strain on anyone, and make them want to punch a wall.

At this point my parents realized it was really going to be an up hill battle with me each step of the way. So my mom who was a school teacher before having kids knew I was really going to be a full time job. So my dad who was a physicist would work full time and my mom would take care of the family.

My parents worked very hard to get me the help I needed and the resources we have today weren't available in 1988. I remember as soon as I got done with school it was off to tutoring 2 days a week just to try to keep up and then it was psychiatrist meetings.

By the age of 12 I had seen more than 10 different psychiatrists and I was taking close to a 100 mg of ritalin a day. All the doctors said the same thing your son is just going to live a different life. However my parents refused to accept this, especially my mom.

As I mentioned part of this story is about two educators well my mom Beth Greene is that first educator. You see my mom would not accept failure as an option. Both my parents beat into my head everyday that I had to work three times as hard as everyone else just to be on the same level. So if it took someone 2 hours to complete a task it might take me 6 hours.

My parents tried to get me into sports and activities and honestly I was not very good, actually I was awful. I remember the highlight of basketball as a kid was scoring one basket a year. When I did that I knew I had accomplished something.

In 1991 my family relocated to Birmingham Alabama I thought great these kids don't know that I am a year behind. This could be a great start, but as I mentioned before one of the downsides of having a learning disability is acting out with frustration and behavior issues.

Kids in the school soon realized that I was different and started to separate me from everyone else. I remember eating lunch by myself all the way through middle school.

Being called stupid because I had to leave my class to go to special classes. Teachers tried to be very accommodating by allowing me not to be timed on test and even take it in another room.

However class mates just accused me of being so stupid I had to cheat and it wasn't fair. My mom fought for me every step of the way in IEP meetings twice a year with school staff to set up a plan.

I was part of many of these meetings. I remember in the 7th grade that Mrs. Breckenridge said Mrs. Greene I think you need to accept that your child needs to be in a special school. I remember my mom standing up not in anger but with confidence.

She said my son doesn't need a different school he just needs people who want to see him succeed outside the box. She said you wait one day my son is going to change the world and I hope you are all here to see it.

As I entered high school I expected the same result. I didn't have a lot of friends and was always treated different because of my learning disability.

I even joined the football team but like I mentioned I wasn't very good at sports. I suffered a football injury without even stepping on the field. I some how tripped in the spirit line before the game and broke my wrist. This was about the same time that second educator entered my life. I met Kathy Burbage my freshman year of high school while attending Chelsea high school. She was a special skills teacher, what I didn't know is how she would change my life over the next 20 years.

Like my Mom and Dad, Mrs. Burbage would not let me fail. When my parents weren't at school she was there to be my advocate. I remember most of the teachers in high school telling me and my parents that I should consider some kind of trade because college just wasn't for me.

The next fours Kathy Burbage would change my life forever. As I mentioned my Dad was a physicist so math and science was a breeze. I mean when we got in trouble as kids we had to do word problems in our head. If you brought a calculator into the house then you knew you were going to be in trouble. As great as I was at Math and Science, English was not my subject.

When I was in the 7th grade I was put into a special needs class. This class included kids in a wheel chair, kids with down syndrome, and kids like myself that had a learning disability. We were pulled from the regular class to stop the other kids from falling behind.

I would not receive another true English course in K-12. So spring 2000 was approaching and it was time for me to look at college. While the other teachers kind of laughed under their breathe Mrs. Burbage helped get me ready to take the ACT.

You don't know intimidation until you try to take a college English test when you haven't had English in 6 years. As I mentioned Math and Science was a breeze. I finally got my test scores back and I had scored a 15. The average person probably scores a 21 on the ACT. A 15 was good enough for conditional college acceptance to Jacksonville State University, also called JSU. You see I just needed them to let me in to show them what I could do.

I enrolled at JSU in the fall of 2000. A 19 year old kid still trying to figure out his learning disability, hoping to make friends, and now trying to survive living on his own for the first time.

Sounds like a disaster waiting to happen, right?

My freshman year I really struggled with non completes. The professors started to question if I should be there. Remember those two educators I told you about?

Well they helped me enroll in some special need classes at JSU. These classes helped you understand different learning styles. As I mentioned my freshman year was rough and my second year wasn't much better.

I finished my second year of college with a 1.9 GPA and had failed freshman English for the 5th time. I remember coming home and handing my grades to my parents. My dad said if you fail another class you are coming home. I don't blame him if it was me I probably would have pulled the plug sooner. My mom did what mom's do she comforted me and said we will figure it out.

I entered my 3rd year of college a few months later. I spent most of the summer learning about learning styles. That fall it was onto freshman English one more time. It was pass or go home. I remembered what I learned about learning styles during the summer. The end of the semester came and my English teacher handed me that grade of a C.

Most people would be disappointed with a C but this was a victory like I had never felt before.

I could finally move on to my major classes which honestly were a breeze for me. I graduated in 2004 with my undergraduate degree in business management. To see the smile on my mom and Kathy Burbage's face was like no other.

I took a year off before deciding to return for my masters degree. Most said masters ha!

You were lucky to finish your undergraduate you will never graduate with a masters degree.

In 2007 I graduated as one of the top students in my class with my masters degree in emergency management with a focus in hazard and flood mitigation.

At the time I was the first person in my family to finish a masters degree. Now that would not last long as everyone else would pass me on the education level.

I remember taking a loan out and on graduation day my dad handed me a check for the loan. He said I never wanted you to believe that things in life would be handed to you.

In recently speaking with my dad he told me there are two things that he has learned from my disability

1. Never give up on your children
2. Never question their determination

In 2009 I started a career in insurance for Liberty Mutual. I said I will do sales for 6 months then I want to work on a national catastrophe team. Well I started working for Liberty Mutual and I wanted to do something special to give back to those that helped me and help those like my self.

I started a partners in education program in 2009 that focused on staff appreciation, student achievement, and parent involvement.

Now the student achievement part was not designed to recognize that student with an A average, but instead maybe that student with a c average that had overcome adversity.

When schools found out about this program and the learning disability I had they reached out to set up the program. We started to partner with schools in multiple states.

In 2010 and 2011 I was recognized as the top producing auto insurance sales agent for Liberty Mutual. That was never the goal or plan it just happened. Honestly I firmly believe that god continues to bless you as you bless others.

In late 2011 my mom started to get really sick and passed away in early 2012. The biggest advocate I had was gone, I never got to thank her, and she never got to see me change the world like she promised so many people.

This was a very hard time for me I talked to my mom sometimes 5 times a day and now nothing.

In 2015 I decided to start my own company Community First Agency. It would continue to focus on those things I had done for the schools for so many years. However as people started to learn what my masters degree was in they started to call us the Flood Guru.

People had flood questions all over the country that they wanted answered. In 2017 I launched The Flood Insurance Guru which would focus on flood insurance, flood education, and flood mitigation. Our goal was to bring hope to people the same way someone brought hope to me. However we wanted to do it with flood education when people felt like there was no where to turn.

In 2019 we dedicated to 365 flood education in 365 days, 150 flood blogs in 150 days, and 100 flood podcast in 100 days. Our goal was to change the world through flood education and giving people a guide.

We ended up accomplishing something that no one else in the industry had done. My mentor Ryan Hanley had done a 100 videos in a 100 days a few years back and I am so appreciative of the lessons I have learned from him. Another mentor of mine Nicholas Ayers has taught me everything there is to know about video with the Made You Look video course.

In 2018 nobody knew about us and in 2019 we had a national brand. A national brand was never the goal we just simply wanted to educate and show people the answers to their flood questions.

So thats the story of how a pair educators and a learning disability created The Flood Insurance Guru. So the next time someone tells you that can't do something maybe because you aren't smart enough or because you have a learning disability, just remember if all you see is a disability then you will miss all the opportunity.

I can't finish this blog without thanking a few people. My mom and dad for the fight they put in. My mom didn't live to see this story play out but I just see her in heaven saying I told you so to all those people. Honestly I am not sure what she saw in me.

Maybe its a moms heart or intuition but I'm glad she did.

If it wasn't for her I probably would have given up a long time ago. Kathy Burbage its been more than 20 years since you entered my life and I thank God everyday that you did because this is your story of you seeing something in people that no one else did. I hope your children see how you have changed the lives of so many people with learning disabilities.

So the next time you think of flood insurance or flood education maybe you will think of our story, maybe you will think there is hope, or maybe think how you could change the lives of someone through education.

If you want to learn more about our story, flood insurance, or flood education then make sure to visit our website. You can also check out our daily flood education videos on our YouTube channel or Facebook page.

 

 

 

 

 

 

 

Online real estate sites like Zillow and Realtor.com have had a major impact on the real estate market over the last 5 years. You can almost find out instantly what your house will be sold for, however there are some misleading things on these sites. Sometimes the square footage might be wrong, the year built, or even the foundation type.

As you can imagine these things could have a big impact on what you could sell your house for in Huntsville Alabama. Having the lowest home inventory in 20 years can also magnify this issue.

However these things could be having an even bigger impact on your flood insurance premiums.

Everybody uses these sites now from realtors to home buyers to insurance agents. It makes it very easy to get the information you need to do a home insurance quote or a flood insurance quote if you are an insurance agent.

You might even be a potential buyer using this information to get your flood insurance quote.

STOP right there that is the wrong way!

As we mentioned before these sites are not always 100% accurate. For example we were just reviewing a listing in Huntsville Alabama for potential home buyer where the property was in a special flood hazard area. We were reviewing everything on the home and noticed when it comes to flood insurance some things were different.

1. Foundation type
2. Year built
3. Update details
4. Estimated value

You see the North Alabama MLS and the online sites had the home listed with a basement, but when we reviewed it there was not a single side of the property that was underground. FEMA's definition of a basement is a property that has all sides of the home below grade.

When it comes to flood insurance this home was actually considered to be on a slab. Had this home been quoted with a basement it could have had some major exclusions for coverages on the first level as well as significantly higher flood premiums.

Now lets use the other example that confuses alot of people and that is when its listed as a basement when its really a crawlspace.

This mistake could have a significant difference on flood premiums. Sometimes the mistake is not caught for a few years. If you have a flood insurance policy through the National Flood Insurance Program they normally request pictures which can prevent this from happening. However if its a private flood insurance policy they may not request these documents and there is no getting this flood insurance premium back from previous years.

So how can updated details impact the property?

So say the site says the home was built in 1950 which makes it a pre firm structure but it was updated in 2004. It list many of the things that were updated but what it doesn't tell you is the home was torn down to the foundation and redone.

As a result FEMA no longer considers this a pre firm structure but instead it is a substantially improved structure. As a result the year built is considered to be 2004. Since the home is in a special flood hazard area an elevation certificate would be required if you decided to do a policy with the National Flood Insurance Program. The rating system could also be completely different since it is no longer a Pre Firm structure.

Estimated value might be one of the most common things that is off with these sites. Now it's always recommended that you reach out to a realtor so you can get accurate values of the market value of the home. Using the estimated value on these sites as an insurance agent can be very dangerous. Whether it is flood insurance or something else this could easily underinsure a property owner. Then what happens is when a claim occurs they may not get the coverage need to replace or repair the home.

This is one major complaint that property owners had in east Alabama on Weiss lake and Lake Logan Martin after the 2019 flooding event.

Many of these property owners either had the loan amount listed on the flood insurance or what they thought the homes value should be. The problem with alot of these sites is they use market value on these amounts and for flood insurance replacement cost is used.

So whats the difference?

Market value is the value someone thinks they could sell their home for.

Replacement cost is what it would actually take to rebuild the home.

As you can imagine when its a bad real estate market there could be a huge difference in these amounts.

So let's say that you bought that house on Lake Logan Martin in 2010 not long after the market crash. You got a great deal on it and got a great rate on the flood insurance.

It might not be as a good of a deal as you think. You might want to pull out that flood insurance policy in see what amount of coverage is listed on there.

I imagine you only have $75,000- $100,000 in coverage when you should have $150,000-$175,000 in coverage. You might not have that much coverage we recently had a client come to us that only had $85,000 in coverage on a 3000 square foot house. As you can imagine this $85,000 in coverage would not have gone very far on a 3000 square foot house.

So we have addressed some issues when using these online real estate sites. Remember while these tools can be great for getting information, you always want to verify this information with a licensed realtor.

So if you have questions about making sure your flood insurance policy is accurate or learning more about what flood insurance options in Huntsville Alabama are available then visit our website. You can also check out our daily flood education videos on our YouTube channel or Facebook page. If you are on the run then check out our daily podcast here.

 

 

 

 

When people hear the words flood or flood insurance you would think you just got a letter from the IRS. It's one of those things that nobody wants to talk about. Its the same story for insurance agents across the country. It's the one product that many agents try to avoid because of the complexity of it, the time it takes, and the confusion of the National Flood Insurance Program.

So today we want to discuss 5 things you need to know about flood insurance as an insurance agent. Once we get through these things today we hope that you have learned something and can better serve your clients.

So lets look at these 5 areas of flood insurance

1. Write Your Own Carriers and NFIP Direct
2. Understanding Flood Zones
3. What is a Policy Transfer
4. Flood Insurance Options
5. NFIP Cancellation Process

 

WRITE YOUR OWN CARRIERS AND NFIP DIRECT

So lets briefly discuss write your own carriers and NFIP Direct. If you have listened to our flood podcast, read some of our flood blogs, or seen our flood education videos then you saw where we briefly discussed the differences of these. However lets give you a brief description. The difference in these two is going directly to FEMA for your flood insurance quotes and servicing compared to going to a 3rd party. In many situations most people would try to avoid a 3rd party but in these situation the 3rd parties called write your own carriers can actually make the servicing of flood insurance much easier especially during the claims process.

As an agent its also important to know that working with the 3rd party might also keep more money in your pocket when it comes to commissions.

So now that we pretty much know the difference in these two options let's get an understanding of flood zones.

 

FLOOD ZONES

This might be one of the hardest things people have when it comes to flood insurance, even for insurance agents.

When is flood insurance required?

What does the flood zone mean?

Well let's answer those questions for you. Now there are many different types of flood zones but we want to discuss the main zones which are flood zone X, A, AE, V, and VE.

Flood zone X is going to be the minimal risk flood zone where flood insurance is not required. While it is not required roughly 30% of flooding still occurs in this zone. This particular flood zone also usually offers the best rates because it is considered low risk. Don't let the low risk designation fool you though this is what happened to so many flood victims of Houston Texas, Nebraska City Nebraska, Tulsa Oklahoma, and Florence Alabama.

This victims were told that since flood insurance was not required that it was not needed. As you can imagine they were pretty upset after losing everything in the 2019 floods.

Let's look at the next flood zone which is flood zone A. Flood zone A which is considered to be the special flood hazard area but normally doesn't have a base flood elevation. Because this is a special flood hazard area or part of the 100 year flood plain flood insurance is required if there is a mortgage on the property or an additional interest.

 

Flood zone AE which is considered to be the special flood hazard area as well but has a base flood elevation. This means you can get a better accuracy of the true flood risk.

Flood zone V or VE are considered costal flood zones. These are areas that are usually near a coastline whether it be a lake or ocean. These properties are also considered part of the special flood hazard area which means like the other zones that flood insurance is required.

So now that we some what have an understanding of the flood zones. What if someone has a flood policy on one of these zones that no longer exists. For example the flood zone has been changed from flood zone X to A or AE. This is what is called a grandfathered policy.

 

POLICY TRANSFERS

This a great scenario where policy transfers come into play this is where the policy is transferred from the seller to the buyer to protect the flood insurance rate and keep the policy grandfathered. This tops the flood zone from changing on the policy as long as there has not been a gap in coverage.

Policy transfers are normally only available through the National Flood Insurance Program.

So are other flood insurance options available for your clients?

Yes generally across the United States there are two flood insurance options available.

We have briefly discussed the first option which is the National Flood Insurance Program but what about the 2nd option which is private flood insurance.

There are some big differences in these two options and both options are not available to everyone.

The National Flood Insurance Program is available to anyone as long as that community is a participating community.

So what is a participating community?

 

These are communities that have agreed to meet a higher standard of flood plain management and follow strict guidelines. By doing so it makes them a participating community this also sets the community up for possible disaster assistance help after a flood.

So if a community does not participate can you still get flood insurance?

Yes there are still options available in some of these communities which brings us to the other option for flood insurance which is private flood insurance.

So what is private flood insurance?

 

PRIVATE FLOOD INSURANCE

Private flood insurance is just like it sounds it's backed by private flood insurance companies while the NFIP is backed by FEMA.

Generally private flood insurance can offer a lot more coverage than the NFIP and many times do it with a 40% savings. One reason is different technologies are used to determine rates. NFIP uses their own flood maps which is based on a parcel but private flood insurance can take a deeper look at historical flooding in an area and the elevation of a property.

Most private flood insurance is considered to be non admitted carriers. As an insurance agent it's important that you understand the difference between non admitted and admitted carriers.

So do your clients qualify for private flood insurance?

It could depend on two things claim history on a property and the type of loan on the property.

Many private insurance companies will not do a flood policy if a property has ever flooded. Some companies only look back 5 years and others limit it to one claim on the property.

So what does the loan type have to do with qualifying?

Well all loan types except for FHA loans currently accept private flood insurance as long as it reads this statement. This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation.

 

ADMITTED and NON ADMITTED CARRIERS

So what is the difference?

An admitted insurance company is backed by the state, which means:

• The insurance company must comply with all state regulations regarding insurance, which are established and overseen by the National Association of Insurance Commissioners.
• If the insurance company fails financially, the state will step in to make payments on claims as necessary.

A non-admitted insurance company isn’t approved by the state, which means:

• The insurance company does not necessarily comply with state insurance regulations.
• If the insurance company becomes insolvent, there is no guarantee that claims will be paid, even if the case is active at the time of the bankruptcy or financial failure.
• If policyholders think their case was handled improperly, they can’t appeal to the state insurance department.

When comparing these two options you want to pay attention to the ratings of these companies typically the better rating the better opportunity for these companies to stay in business. We normally do not recommend working with anyone that does not have an A rating.

Now there are very few admitted private flood insurance companies out there. However if you are in areas like Florida or New Jersey you have to quote first through these admitted carriers before going to the non admitted or surplus market.

It's important to understand your state guidelines on using surplus or non admitted carriers. Check out your states insurance website for guidance on this.

 

CANCELLATION PROCESS

Let's look at the 5th thing that an insurance agent should know about flood insurance and that is the cancellation process. Let's look at the private flood insurance process first.

Private flood insurance follows similar guidelines as the National Flood Insurance Program. Now if you don't have a mortgage you can cancel at anytime but you want to pay very close attention to the minimum premium earned policy.

For example say the minimum earned premium is 50% this means you won't be getting any more than that back. So if you decide to cancel the policy 2 months in you could be out alot of money. You also want to see which fees are excluded when a policy is refunded. Normally any kind of surplus or policy fees are fully earned and not refundable.

So what if you have a mortgage? Can you cancel at anytime?

No you can only cancel this policy if your mortgage company will allow you to. Generally the private flood insurance company requires a signed cancellation letter and a letter from the bank stating it is ok to cancel the policy.

Now let's look at the National Flood Insurance Program cancellation process. This can be confusing and its why we recently do a video series on the 26 cancellation reasons. You can find the podcast that discusses those reasons here.

 

Let's look at cancellation reason 26 which is on the one that normally causes all the confusion. We probably get at least one question about this cancellation process everyday. This cancellation reason discusses midterm cancellation when a duplicate policy is in place outside the National Flood Insurance Program.

In 2018 FEMA released a bulletin stating that they would allow midterm cancellations for property owners to move to the private market if their bank allowed it.

However a few months later they reversed this decision. So as of 2020 the only way this policy can be cancelled for duplicate coverage is at renewal.

There are a few things you will need to make sure this policy gets cancelled properly. You will need a letter from your bank stating that they will accept private flood insurance and you will need a signed cancellation letter from the agent and client.

Here is where alot of people get in trouble when doing this they don't account for the waiting period with private flood insurance.

If its a 5 day or 15 day wait period you want to make sure that the new private policy is issued that many days before the renewal date. If you make the policy effective on the date of renewal or even one day later it could cause FEMA not to cancel the flood insurance policy for another year.

 

So we have discussed 5 things you should know about flood insurance as an insurance agent. Maybe you want to get a better understanding about other things on flood insurance or see how we can help your clients get their flood zone changed? Then make sure to visit our website you can also check out our daily flood education videos on our YouTube channel or Facebook page Flood Insurance Guru.

 

 

 

Flood zones can sometimes be difficult to understand. When are you in one and when are you not? What sources can be trusted to give you the right information to verify the flood zone. Does your mortgage company have the right zone and if not what can be done?

Sometimes trying to read a flood map can be like trying to read a foreign language for the first time. You have to understand a few things to get a good understanding of what these maps mean.

The first thing you have to understand is what each zone means and are they mandatory. Below are some of the main flood zones

1. Flood zone X
2. Flood Zone A
3. Flood zone AE
4. Flood zone V
5. Flood zone VE

Let's get a brief understanding of what each one of these zones mean.

Flood zone X is what is considered a minimal risk zone. Insurance is not mandatory in this zone it is important o understand that 30% of flooding occurs in this zone normally as a result of flash flooding. These zones also carry preferred rated policies that carry some of the most favorable rates.

Next is flood zone A this is considered to be part of the 100 year flood plain but many times this area does not have a base flood elevation. This means that many of the flood risks really are undetermined because flood studies have not been done in the area.

Flood zone AE is also part of the 100 year flood plain but has a determined base flood elevation making measuring the risk a much easier task.

Flood zone V are coastal areas like flood zone A they have no base flood elevation

The last zone we want to look at is flood zone ve these are coastal areas where a base flood elevation has been determined.

Now that we understand flood zones a little bit we have a better understanding of what is required and what isn't.

So let's get back to that letter you got from your mortgage company that states you are in what is called a special flood hazard area and that flood insurance is required. You think to yourself there is no way this property is in a flood zone it sits on a hill.

It's very possible that you are absolutely correct. There are really two problems that could be giving you the wrong information.

1. FEMA bases maps on parcels
2. 3rd party vendors

Your house sitting on a hill doesn't mean according to FEMA that its not in a flood zone. Remember everything is in a flood zone. It might be a low risk like a flood zone X or a high risk like a flood zone AE. FEMA currently bases their maps on parcels. This means that the area below your home might be listed in the same flood zone as your home.

How is that possible the elevation difference is 25-50 feet.This is one of the downsides of the parcel system.

The other problem that comes into play is 3rd party vendors being used for zone determinations. Some times these companies don't all have the right information and as a result the wrong flood zone could be provided.

So what can you do to fight this information?

Whether you are a purchasing a new home or fighting the letter you just got in the mail you have the right to appeal this information. There are a couple of options here

1. Letter of determination review
2. Letter of map amendment
   
   

So what is a letter of determination review?

According to FEMA a letter of determination review is is an option available to a property owner to appeal a lender's flood zone determination. To have this process completed it generally cost $80 for the process.

Whether this is a property you currently own or one you are looking at buying you have 45 days of the notice being sent by the lender to the borrower stating the building is located within the Special Flood Hazard Area (SFHA).

So what happens if you win or lose this process?

Well if you win then the mandatory requirement to carry flood insurance will be removed.

If you lose the appeal then you will continue to be required to carry flood insurance on the property.

So what about a letter of map amendment?

What is it?

According to FEMA a letter of map amendment also known as LOMA is an official amendment, by letter, to an effective National Flood Insurance Program (NFIP) map.

This process works a little bit different than a letter of determination review. A LOMA is a request to actually change the flood map. You have to prove that the lowest adjacent grade of the property is above the base flood elevation and the risk is minimal. This process generally takes about 30-60 days for FEMA to review. Below is some additional information that FEMA may require for a LOMA.

1. Elevation Certificate
2. Property deed
3. Tax plot
4. Copy of flood insurance rate map

The appeal outcome is the same as the letter of determination review process. If you win the mandatory requirement for flood insurance will be required. Generally a letter from FEMA needs to be submitted to the bank. Then a letter from the bank needs to be sent to the flood insurance company in order to win the process.

If you lose you will continue to keep your flood insurance going.

Sometimes these processes can be confusing. We have an educational background in flood mitigation so we are here to help in anyway possible.

If you have further questions about how to complete this process or if you will win then make sure to contact us. You can visit our website to get more information or even order an elevation certificate if you need on. You can also check out our daily flood education videos on our YouTube channel or Facebook page The Flood Insurance Guru. You can also tune into our podcast to get more information.

 

 

 

 

 

Sometimes a FEMA policy simply needs to be cancelled to make sure certain dates line up. That is exactly what we are talking about today, when a FEMA policy needs to be cancelled or rewritten to match another insurance policy on the same building. It's very important that these dates line up exactly. It's not unusual for FEMA to not cancel a policy because of incorrect dates.

We want to discuss a few things

1. Conditions
2. Cancellation effective date
3. Type of refund
4. Required documentation

Let's first look at two conditions that must exist when cancelling a FEMA or National Flood Insurance Program policy for reason 3.

1. The insurer must remain the same for the new flood policy with the same or higher amounts of coverage. The agent must submit a new application and premium.
2. The other insurance coverage for which the common expiration date is established must be for building coverage on the same building insured by the current in-force flood policy

If these conditions do not exist then it would not be a valid reason for cancelling a policy under cancellation 3.

So let's say you are able to get the policy cancelled when would the effective date of cancellation be?

 

The cancellation date under reason 3 is going to be subject to a 30 day wait period just like any other policy. These means that if changes to building coverage are needed they would be subject to a 30 day wait period as well. Its important to understand this because of you don't at least have your loan amount covered then the bank could force place coverage.

It's important to remember that in order to get the proper refund you want to make sure to have all the proper paperwork in within one year of the new effective date.

Now let's talk about what kind of refund you might be getting?

If the cancellation is done properly then a prorated refund will be received which includes increase cost of compliance, reserve fund assessment, and homeowner flood insurance affordability act surcharges.

So in order to get these done there has got to be some required documentation correct?

Yes lets discuss what required documentation is needed. There are three things that are needed.

1. A new application and premium
2. The agent must request cancellation of the prior policy upon receipt of the new policy declarations page
3. The insurer must retain a copy of the new policy declarations page and the other perils policy declarations that show the building address and policy effective dates

So we have talked about FEMA cancellation reason 3 when cancelling a policy to match a common expiration date. We have discussed what the conditions are, what type of refund you should get, and what the needed documentation is?

Maybe you have further questions about this cancellation rule? If so make sure to visit our website floodinsuranceguru where we have free flood educational resources. You can also check out our YouTube channel Flood Insurance Guru where we do daily flood education videos.

Remember we have an educational background in flood mitigation which means we are here to help you understand your flood insurance, flood risks, and mitigating your property to help you lower flood premiums and flood damage.

 

 

As mentioned in our previous blog we are discussing 26 cancellation reasons in 26 blogs. In the first part we talked about reason or code 1 when a building is sold, destroyed, removed, or altered.

We briefly discussed valid cancellation reasons, type of refund, and documentation needed.

In this blog we want to discuss reason or code 2 which is when contents are sold, removed, or destroyed.

Contents Removed, Sold, or Destroyed

It may seem to you that there are not a lot of resources out there for flood insurance when you don't own the building. It's not that FEMA is trying to look over what is called the tenant, there just normally more focus on the property owner. One reason normally is because of the mandatory mortgage requirement. There are normally not a lot of mandatory requirements when it comes to flood insurance for contents or business property. However we still want you to understand exactly what to do when you have a contents only policy through the National Flood Insurance Program.

So you you took a big risk and started a business last year. You weren't sure if it was going to survive or if you were going to survive. However you made it and your business is growing. Well the time has come for you to renew your lease but as you have added staff you need more space.

So you make the decision to move into a bigger building in a different location. This is where the cancellation reason for contents being moved comes into play.

So what exactly do you need to do?

Well lets talk about the first step and that submitting the cancellation request. You need to have the following two things completed.

1. Signed cancellation letter on date you moved
2. Signed cancellation letter with insurance agents signature

So once these things have been completed what else is needed. Well if you moved you want to provide an inventory record that shows the contents were moved. You could also submit a signed statement stating the contents are no longer at the location.

So how does the refund work?

Well your refund would be be prorated and based on the cancellation date.

So what about if contents are destroyed?

Let's imagine that you are renting an apartment and you pull up in the complex parking lot to see the entire complex on fire. It takes hours for the fire department to put out the fire and the entire complex is a total loss.

You have lost everything you owned. However having renters insurance should help you get back on feet a little bit quicker.

It takes a few weeks but you finally get a check from the insurance company for your contents.

So what about the flood insurance?

Your don't have any contents left and you aren't living at the location anymore, so how can you cancel your flood insurance policy or can you cancel your flood insurance policy?

Thankfully for you, when contents are destroyed it is a valid reason for cancelling a FEMA policy.

So what do you need to do?

Like when contents are moved you need to submit a cancellation letter that is signed by you and the insurance agent.

You then need to show proof that these contents were destroyed.

In the situation we have talked about you should be able to get a letter from the insurance company that states the contents were destroyed.

So how does the refund work?

The refund will be prorated and based on the date the contents were destroyed. Its important to get this information in within a year to make sure that you get the proper refund.

So what if contents are sold?

Let's say you have decided to finally jump at the dream of living over seas. In order to leave out this dream you have decided to sell everything before embarking on this journey.

You basically sell anything you own that doesn't fit in your suitcase. So can you cancel your flood insurance.

While contents being sold is a valid reason to cancel your flood insurance there are some things you want to make sure to do before leaving the country.

 

The following things need to be submitted to FEMA

1. Signed cancellation letter
2. Bill of sale that contents have been sold.

So will the refund be a full refund or prorated refund?

The refund will be prorated and based on the date the contents were sold.

So we have reviewed what qualifies as a valid cancellation reason under reason or code 2. It's important that you follow the steps of submitting the proper cancellation documentation and any other required documentation to make sure you get a prorated refund back as quick as possible.

It's also important to understand that if renewal bills have been paid then there would be a full refund due if the inception date has not passed.

So maybe you lease an office or rent an apartment and have additional questions about flood insurance. Make sure to visit our website. You can also check out our YouTube channel or Facebook page where we do daily flood education videos. You can also tune into our podcast or click the link below to get more information.

 

Getting a FEMA flood policy can be confusing. Trying to figure out what is covered and what isn't covered can be frustrating. The cancellation process can be even more confusing. 26 cancellation rules for 26 different cancellation reasons that just sounds like a headache. It can feel like trying to figure out the tax code and who wants to do that.

 

 

So we want to talk about what rules are active, which rules are inactive, what rule applies to what scenario, what documentation is needed, are you getting a refund?

You see its already getting confusing and you just want to throw your hands in the air and say.... forget it.

 

Well over the next 26 blogs we want to break down each rule for you and make it as easy as possible.

How do you make FEMA rules easy to understand? Well hopefully we can find a way to get us both through these rough waters.

So let's get into FEMA cancellation reason 1 or code 1. This rule particular rule is talking about 4 scenarios for a building when its

1. Sold
2. Removed
3. Destroyed
4. Altered

On each one of these scenarios we want to discuss the following

1. Valid reasons
2. Documentation needed
3. Cancellation date and request
4. Type of refund

So let's look at a building being sold. You have had your house listed for almost a year. You have finally made it past the obstacle of flood insurance being required and things being needed to be fixed on the house. You just left the closing table and it's time for the next chapter of your life.

 

Wait!!!!!

Can you finally cancel the flood insurance? Maybe

Let's talk about it. As mentioned before you just walked a way from the closing table and the house is no longer yours. This means you no longer of an insurable interest in the property.

What exactly does that mean?

It means that if something happens to the property it no longer impacts you.

According to FEMA this qualifies as a valid reason to cancel your flood insurance.

HOORAY!!!!!

The next two important questions

1. What documentation is needed?
   
2. Are you getting a refund?

Since the property was sold you have two options for documentation. Either a bill of sale or a loss settlement. This documentation will actually show that a transaction took place. This shows FEMA that your insurable interest is gone.

The next thing that is needed is a signed cancellation letter needs to be sent in to FEMA with the effective date the property is sold. Its best yo have your signature as well as the insurance agents signature this will stop any further delays.

So once these things are sent in then a refund should be issued generally within 30 days.

So what kind of refund will it be?

Drum roll......

It will be a prorated refund based on the effective date of the cancellation. So if you have had the policy for 6 months then you should get 6 months of refund back.

 

Now that we have talked about if a building is sold lets look at some other reasons that fall under reason or code 1 of the FEMA cancellation reasons.

So what if a building is removed, what exactly does this mean?

Generally when a building is removed its being relocated to another location.

When it comes to documentation on a building being removed you can generally get a letter from the courthouse stating it was moved and where it was removed.

So do the same cancellation rules and refund rules apply here?

Yes the cancellation date is the date the building was relocated and you will be getting a prorated refund based on this date.

What if a building is destroyed?

A building being destroyed is valid reason for cancelling a FEMA policy but what kind of documentation can be provided?

Well if it is a result of an insurance claim you can get a copy of a total loss letter.

This is a letter from the insurance company that states that the building is a total loss.

If it was destroyed for other reasons you can also submit photographs showing the building is no longer there.

So we have talked about if a building is sold, removed and destroyed, but what about altered.

A building being physically altered is very important when it comes to cancelling a FEMA policy. FEMA has strict eligibility guidelines on what is considered a building.

So what exactly would a physical alteration be?

Well a good example is a mobile home that is on a permanent foundation. If the foundation type changes or it is removed from the foundation then the building is no longer eligible for National Flood Insurance Program.

 

Do the cancellation and refund processes work the same way on altered buildings.

Yes like buildings that are sold, removed, or destroyed altered buildings use an effective cancellation date on the date these changes took place. It also qualifies these property owners for a prorated refund.

As you can see under reason or code 1 of the FEMA cancellation reasons there are some unique situations on buildings that have been sold, removed, destroyed, or altered.

In these situations it's crucial that you understand the valid reasons, effective cancellation date, type of refund, and documentation needed. FEMA is very strict on this process and you want to make sure your cancellation does not get delayed.

Make sure to tune into our next blog when we discuss reason or code 2 contents that are sold, removed, or destroyed.

If you have further questions about FEMA cancellation reason or code 1 make sure to visit our website. You can also check out each one of these reasons on our YouTube channel The Flood Insurance Guru. You can also tune into our daily flood education videos on our Facebook page The Flood Insurance Guru or catch our daily podcast.