Jackson Lake, located in Jackson, Georgia, is a picturesque destination known for its natural beauty and recreational opportunities. However, like many waterfront communities, it faces the potential risk of flooding.

For homeowners and property investors in the area, understanding flood insurance costs and flood risk factors is crucial. In this blog, we'll explore whether flood insurance on Jackson Lake is expensive, what factors influence the cost, and how you can make informed decisions to protect your property and investment.

Flood Insurance: A Necessity, Not an Option

Before delving into the cost of flood insurance and flood risk factors on Jackson Lake, it's essential to understand why it's crucial. Floods can be devastating, causing substantial damage to homes, possessions, and even infrastructure. In the United States, flooding is the most common and costly natural disaster, and standard homeowners' insurance policies typically do not cover flood damage.

Jackson Lake, situated in Butts County, Georgia, falls within a flood-prone area. Many areas along the lake in Jackson and Covington Georgia fall within a high-risk area. We've seen this happen specifically three years ago when Jackson Lake was overwhelmed by the water spilling over from the Jackson Lake dam and this can easily go through lower-lying areas.

The risk of flooding here, while not constant, exists due to various factors like heavy rainfall, rising lake levels, and the lake's proximity to rivers and streams. To protect your investment, securing flood insurance is a prudent choice.

Factors Influencing Flood Insurance Costs

Several factors influence the cost of flood insurance on Jackson Lake:

1. Flood Zone: Properties in high-risk flood zones (Special Flood Hazard Areas, or SFHAs) generally have higher insurance premiums. The Federal Emergency Management Agency (FEMA) designates these zones based on historical flood data and other factors but does not use them in its rating system any longer.

2. Elevation: The elevation of your property relative to the Base Flood Elevation (BFE) can impact costs. Homes above the BFE typically pay lower premiums.

3. Building Characteristics: The design and construction of your home also matter. Elevated homes with flood-resistant materials and features might receive lower premiums.

4. Coverage Amount: The amount of coverage you choose affects your premiums. It's crucial to strike a balance between adequate coverage and affordability. If you have a mortgage you will be required to cover at least the loan amount

5. Deductibles: Higher deductibles can lead to lower premiums, but they also mean you'll pay more out of pocket in case of a flood event.

6. Flood Insurance Program: Policies through the National Flood Insurance Program (NFIP) may have different rates than those through private insurers.

The Cost of Flood Insurance on Jackson Lake 

The cost of flood insurance can vary significantly, even within the same area. To provide a rough estimate, the average annual premium for flood insurance in the United States is around $900. However, this figure can be higher or lower depending on the aforementioned factors. The average price of flood insurance for homeowners on Jackson Lake we see is around $700 a year.

Properties in high-risk flood zones (SFHAs) typically face higher premiums. If your home is not in a high-risk area and is elevated above the BFE, you may be eligible for lower rates. The specific location, elevation, and construction characteristics of your property will determine your individual rate.

To get an accurate estimate, it's advisable to contact insurance providers who specialize in flood insurance for Jackson Lake and request quotes tailored to your property. You can start the process of getting flood insurance on Jackson Lake by starting here.

When picking an agency for your flood insurance needs you want to make sure they offer policies through the National Flood Insurance Program and multiple private flood insurance carriers.

Flood Insurance Options on Jackson Lake

When looking at Jackson Lake homes for sale you want to make sure you have all the options on the table. Every day we see home buyers who have the wrong flood risk information or an outdated flood map. This can cause flood insurance premiums to go up. 

Let's look at some of the different flood zones in the area.

Flood Zones on Jackson Lake

• Flood Zone A
  
• Flood Zone AE
  
• Flood Zone X
  
  

National Flood Insurance Program (NFIP) for Jackson Lake

NFIP is the most common option for flood insurance on Jackson Lake. This is the flood insurance program offered through the federal government. Until about 20 years ago it was the only flood insurance option for Jackson and Covington Georgia.

NFIP offers building coverage up to $250,000. and contents coverage up to $100,000. The rates are set by the federal government so no matter where you go all rates should be the same. However, remember the flood risk changes by address and so do the flood insurance rates.

NFIP offers a couple of different solutions to Jackson Lake home buyers. You might be able to take over an existing homeowners' flood policy. This means you are locked in at their current rate until the renewal date.

Even if you don't take over the policy you might still be able to use their existing policy number to benefit your rate great. Recently we saw where this gave a Jackson Lake homeowner a rate of $475 a year instead of $1250. Jackson Lake commonly uses NFIP as the primary choice for flood insurance.

NFIP is a government program that has been the only option for flood insurance in Jackson and Covington, Georgia until around 20 years ago. The program provides coverage for buildings up to $250,000 and for contents up to $100,000. The rates for NFIP are fixed by the federal government, ensuring consistency across locations. However, it is important to note that flood risk and insurance rates vary depending on the address.

NFIP offers different options for those purchasing homes on Jackson Lake. One possibility is to take over an existing flood insurance policy from a previous homeowner, allowing you to maintain their current rate until the renewal date.

Even if you do not take over their policy, you may still be able to benefit from their existing policy number and receive a lower rate. For example, we recently witnessed a Jackson Lake homeowner receiving a rate of $475 per year instead of $1250 by utilizing this approach. 

Private Flood Insurance on Jackson Lake

Private flood insurance on Jackson Lake refers to a form of flood insurance coverage that is purchased through a private insurance company, rather than being provided by the government-backed National Flood Insurance Program (NFIP).

As Jackson Lake is located in the United States, it may be subject to flooding due to various factors such as heavy rainfall, snowmelt, or dam releases. While flood insurance is not a requirement for homeowners in low-risk areas, it is highly recommended, as standard homeowners insurance policies typically do not cover flood damages.

Private flood insurance offers an alternative to NFIP coverage and can provide homeowners with additional options and flexibility in terms of coverage limits, claims processes, and premiums. Private insurance policies may also offer coverage for additional damages that are not typically covered by the NFIP, such as loss of use or landscaping damage.

To obtain private flood insurance on Jackson Lake, homeowners can reach out to various insurance companies or insurance brokers that offer this type of coverage. It is advisable to compare quotes and coverage options from different providers to ensure that the policy meets the homeowner's specific needs and budget.

We recommend getting at least 3 different private flood insurance quotes.

It is important to note that the availability and cost of private flood insurance can vary based on factors such as the property's location, elevation, flood zone designation, and previous flood history. Insurance companies will likely assess the flood risk associated with the property before providing a quote.

Homeowners should carefully review the terms and conditions of the private flood insurance policy, including coverage limits, deductibles, exclusions, and any special requirements or endorsements. Consulting with an insurance professional can help ensure a thorough understanding of the policy and its implications.

Overall, private flood insurance on Jackson Lake can provide homeowners with an additional layer of protection against flood damages, complementing any existing homeowners insurance policies and providing peace of mind in the face of potential flood risks.

Tips for Managing Flood Insurance Costs

1. Flood Zone Determination: Understand your property's flood zone and elevation relative to the BFE. You might consider mitigation measures to lower your risk and insurance costs.

2. Shop Around: Obtain quotes from multiple insurance providers to compare rates and coverage options.

3. Elevation Certificate: Consider getting an elevation certificate to provide accurate data about your property's elevation and flood risk. This can sometimes result in lower premiums.

4. Mitigation Measures: Implement flood-resistant improvements to your home, such as elevating utilities, installing flood vents, or fortifying your foundation. These steps can not only reduce the risk of damage but also lower your insurance premiums.

Flood insurance is a necessity for homeowners and property investors in areas prone to flooding, including Jackson Lake in Jackson, Georgia.

While the cost of flood insurance can vary based on multiple factors, understanding your property's risk and taking mitigation measures can help you secure coverage that offers both protection and affordability.

Ultimately, investing in flood insurance is an investment in safeguarding your property and financial well-being against the unpredictable forces of nature.

 

If you're not careful, flood insurance for multi-family properties in Chattanooga, Tennessee could significantly impact your profit. Wouldn't it be helpful to know the current price and have an estimate for the next few years? We understand that multi-family investors like yourself face this issue daily.

 

That's why, for over a decade, we have been assisting multi-family investors in overcoming flood insurance challenges. Our expertise has led us to develop this indispensable guide specifically tailored to flood insurance for multi-family investors in Chattanooga, TN.

1. Gain a thorough understanding of your property's flood zone by immersing yourself in FEMA's Flood Insurance Rate Maps (FIRMs). These invaluable maps will unveil the flood risk associated with your property, with zones marked by the letters A or V indicating high-risk areas. Lenders typically require flood insurance for properties situated in these zones, making it crucial to familiarize yourself with the flood zone classification.

2. Assess Your Exposure: Delve into the depths of historical flood records, study the intricacies of local drainage systems, and uncover the elevation of your property to gain a comprehensive understanding of the potential flood hazard. Armed with this knowledge, you can confidently determine the optimal coverage and associated costs.
   
   

3. The National Flood Insurance Program (NFIP) is a federal program that offers flood insurance policies to property owners. These policies can be purchased through insurance agents in your local area. One advantage of NFIP policies is that they provide standardized coverage, regardless of the insurer. However, it's important to note that rates can still vary.
   
   

4. Explore the world of private flood insurance, a relatively new option that has emerged in recent years. These policies go beyond the standard coverage provided by the National Flood Insurance Program (NFIP), offering additional protection and the ability to customize your policy to fit your unique needs. Take the time to research and compare both NFIP and private insurance options to find the perfect fit for your valuable multi-family property in Chattanooga, Tennessee.
   
   

5. Coverage Options: When it comes to flood insurance, it's important to know what is included and what is not. The coverage typically extends to both the building structure and its contents. For the structure, you can expect coverage for walls, floors, foundations, electrical and plumbing systems, and more.
   
   As for the contents, appliances, furniture, electronics, and personal items are typically covered. Familiarize yourself with the specific details of your policy to ensure you have the necessary protection in place.
   
   

6. Evaluating Elevation: In the event that your property is located in a flood zone with a high risk of flooding, it is common for an elevation certificate to be necessary. This certificate serves the purpose of determining the base flood elevation of your property, which can ultimately impact the rates of your insurance coverage.

7. Factors Affecting Costs: The cost of flood insurance premiums is influenced by various factors, including the property's geographical location, the level of flood risk, the coverage limits, and the deductible amount. Collaborating with an experienced insurance agent can provide you with precise cost estimations tailored to your specific circumstances.
   

8. Allow for a waiting period: Keep in mind that there is typically a 30-day waiting period after purchasing flood insurance before the coverage takes effect. It is crucial to plan ahead and ensure you have the necessary coverage in place in case of a flood event.

9. Insurance Agent: Look for insurance professionals who specialize in flood insurance and have extensive experience working with multi-family properties.
   
   These experts will serve as your trusted guides throughout the entire process, ensuring that you select the perfect policy that aligns with your specific needs and requirements. Their expertise will provide you with invaluable insights and assistance, giving you the peace of mind you deserve.
   

10. Take proactive steps to protect your multi-family property from flood damage. In addition to having flood insurance, consider implementing strategies like raising utilities and utilizing flood-resistant building materials. By investing in flood preparedness measures, you can minimize potential damage and safeguard your investment.

If you want to know more about flood insurance and get answers to questions that are bugging you when it comes to flood risk and flood policies, click below to access our Flood Learning Center.

Start simplifying flood insurance. Just follow these three simple steps:

• Fill out this form —
• Talk with our flood education specialist.
• Get back to the important things in your life.

When it comes to flood insurance, there are few companies that can match the reputation and expertise of Lloyd's of London. But you might be asking who is this Lloyd's of London?

In this article, we want to share with you the three important things to know about Lloyd's of London and flood insurance.

1. NOT an Insurance Carrier

First and foremost, it is important to note that Lloyd's of London operates differently from traditional insurance companies. Rather than being a conventional insurer, it serves as a marketplace where multiple insurance providers collaborate to underwrite various risks.

This unique structure enables Lloyd's to offer coverage for risks that may be too complex or large for individual insurers to handle.

When it comes to flood insurance, Lloyd's of London consists of a dedicated team of experts who specialize in assessing flood risks and providing comprehensive coverage options. Their expertise ensures that property owners in flood-prone areas receive tailored flood insurance policies that cater to their specific needs.

Whether you own a residential property or a commercial building or are involved in infrastructure projects, Lloyd's of London has the capability to provide you with comprehensive flood insurance coverage.

 

2. Knowing Flood-Related Risks

Lloyd's of London has a long history of providing coverage for flood-related risks. The company has been in operation for over three centuries and has developed extensive knowledge and expertise in assessing and managing flood risks.

This experience allows Lloyd's to offer tailored flood insurance policies that cater to the specific needs of property owners in flood-prone areas.

This can really be helpful when you start seeing some carriers who don't want to take the risk of your property just because it sits in a high-risk flood zone like Flood Zone A. Such ability can also help you avoid the more expensive costs of flood insurance.

3. Security and Stability

Lloyd's of London is known for its financial strength and stability. As a marketplace for insurance providers, Lloyd's operates under a unique system called the Lloyd's market chain.

This chain includes various entities such as syndicates, brokers, and underwriters, who all work together to ensure the financial stability and security of the policies issued through Lloyd's. This means that when you purchase a flood insurance policy from Lloyd's of London, you can easily feel safe and secure with the company's ability to pay out claims.

Yes, this is true even in the event of a large-scale flood event.

 

A Name You Can Trust

In conclusion, if you are in need of flood insurance, Lloyd's of London is a name you can trust. With its unique marketplace structure, extensive experience in managing flood risks, and financial strength, Lloyd's is well-equipped to provide comprehensive coverage for properties in flood-prone areas.

So, whether you are a homeowner, a business owner, or an investor, consider Lloyd's of London for your flood insurance needs and have peace of mind knowing that your property is protected against the risks of flooding.

If you want to know more about flood insurance and get answers to questions that are bugging you when it comes to flood risk and flood policies, click below to access our Flood Learning Center.

Start simplifying flood insurance. Just follow these three simple steps:

• Fill out this form —
• Talk with our flood education specialist.
• Get back to the important things in your life.

Hello there, homeowners and business owners! Today, let's dive into a topic that has been making waves lately - the increase in flood insurance rates. Whether you live near a river, on the coast, or in an area prone to heavy rainfall, this information can sure to help you get make the best out of your investment and flood insurance.

Buckle up, grab a cup of coffee (or your favorite drink), and let's dive into understanding why flood insurance rates are going up.

Understanding the Risk

Floods can be devastating, causing extensive damage to properties and leaving homeowners in financial distress.

To mitigate these risks, insurance companies offer flood insurance, providing assistance to policyholders when disaster strikes. However, in recent years, we've seen a steady uptick in flood insurance premiums.

But why?

1. Climate Change:

As the Earth's climate continues to change, extreme weather events, including heavy rainfall and intense storms, are becoming more frequent. These factors significantly contribute to the overall risk of flooding in various regions.

Insurance companies use historical data, including floodplain maps, to assess the probability of flooding in different areas. When flood risks increase due to climate change, insurance rates inevitably follow suit.

It's undeniable that with the constant extreme changes to climate hence weather patterns, both rainfall and eventual flood behavior can also change for the worse.

2. Infrastructure Costs

Flood insurance rates are also influenced by the cost of maintaining and upgrading infrastructure, such as dams, levees, and drainage systems. These structures help protect communities from flood-related damage.

However, as they age, they require repairs and improvements, which can be quite expensive. These costs are often passed on to policyholders, resulting in higher insurance premiums.

3. Increased Development in High-Risk Areas

Population growth often leads to increased development, and sometimes, this occurs in high-risk flood zones. Construction in such areas can disrupt natural drainage patterns, increasing the chances of flooding.

As a consequence, insurance companies face higher claims payouts, leading them to adjust their rates to match the increased risk. This is a double-edged blade because the good part is that more and more carriers would still provide flood insurance despite the higher risk however it could mean higher premium rates.

4. Changes in Insurance Regulations:

In recent years, regulatory changes within the insurance industry have also impacted flood insurance rates.

The Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014 introduced reforms to the National Flood Insurance Program (NFIP). These changes aimed to improve the program's financial stability and accuracy in assessing risk.

However, some policyholders experienced significant rate increases as a result of these reforms.

 

What is Next

Now that we have a better understanding of the factors driving flood insurance rate increases, what can homeowners and business owners do to navigate these changes?

1. Evaluate Your Risk

It's essential to understand your property's flood risk by checking floodplain maps and consulting with local authorities. You can also check your risk here. This information will help you determine how vulnerable your area is to flooding and make informed decisions about flood insurance coverage.

It is important to understand how these risks can change in the future.

2. Shop Around

Don't settle for the first flood insurance quote you receive.

Shop around and compare policies from different insurance providers. Some private insurers offer flood insurance, providing potential alternatives to the National Flood Insurance Program (NFIP). Generally, private flood insurance carriers can even provide a competitive premium rate which can mean that you get the most out of your hard-earned money.

By exploring multiple options, you can find coverage that suits your needs and budget. This can mean getting excess flood insurance coverage for your business through the loss of use coverage. For residential properties with flood insurance, this could mean getting that Additional Living Expenses (ALE) coverage which can really help you get back on track after a flood loss.

3. Invest in Mitigation Measures

Consider implementing flood mitigation measures to reduce your property's vulnerability to flooding. These can include elevating your home, installing flood barriers, or improving drainage systems. By taking proactive steps to protect your property, you may qualify for lower flood insurance premiums.

For the federal flood insurance side, working on your flood mitigation measures on your property can mean that you are also helping your community get more discounts. This is due to the fact that the Federal Emergency Management Agency (FEMA) has the Community Rating System (CRS) which provides a decrease in premiums for flood insurance of up to 45% discount for participating communities.

 

Commercial Flood Insurance

While flood insurance rates are on the rise, it's crucial to remember that they are driven by various factors, including climate change, infrastructure costs, and changes in insurance regulations. Understanding these factors empowers homeowners to make informed decisions about coverage and take steps to mitigate risks.

By evaluating your risk, shopping around, and investing in mitigation measures, you can navigate the changing landscape of flood insurance rates and protect your most valuable asset – your home.

If you want to start protecting your property from the dangers of flooding and get the best policy tailor-fitted to your needs, just follow these three simple steps!

• Fill out this form —
• Talk with our flood education specialist.
• Get back to the important things in your life.

Want to learn more about flood insurance and find the answers to questions you have about it? Just click the button below to access our Flood Learning Center where we answer your frequently asked questions about floods, flood insurance, and everything in between!

 

When local residents of Covington GA think about flooding their home town normally doesn't come to mind. What normally comes to mind are areas like Jackson Lake or Lake Oconee where they may have a lake house.

However flooding issues in Covington Georgia during winter and spring months is starting to change how people look at flooding in Covington Georgia.

Before we can look at the flooding that has occurred we need to know the flood zones in the area.

Like most areas outside the coast Covington Georgia has three main flood zones.

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

Flood zone X is the non mandatory flood zone where flood insurance is not required. The majority of Covington GA and Newton county fall within this area.

 

Flood zone A which is considered to be the special flood hazard area but normally doesn't have a base flood elevation includes areas like West Clark Street and Bob Williams Parkway.

 

Flood zone AE which is considered to be the special flood hazard area as well but has a base flood elevation includes areas like Main Street in Porterdale along the Yellow River. This also includes what is known as the Lofts.

So now that we know the three main flood zones for Covington and Newton county Georgia. Let's look at when flooding is likely to occur in the area.

You generally have two times a year where flooding becomes an issue but they normally occur for different reasons. In the winter months you normally have frontal systems that stall out for several days dropping a lot of rain over those days. Then in the spring you have flash flooding that occurs normally from a lot of rainfall from severe thunderstorms.

The flooding that is occurring right now in Covington Georgia is a direct result of a frontal system stalling out dropping several inches over the course of a few days.

However what is magnifying this problem is December was extremely wet keeping water tables and rivers like the Yellow River full.

As a result this additional rainfall simply has nowhere to go. It's important to know that the National Flood Insurance Program no longer looks at flood zones when determining flood insurance rates.

An area that has seen this happen time and time again is the Riverside RV park along the Yellow River.

In December 2015 Covington Georgia saw significant flooding along highway 278 as a result of the same kind of system.

So when these systems come through Covington Georgia what can you do to protect yourself?

Well, the first step is knowing your flood zone. Know if you live in a special flood hazard area and the history of flooding in that area.

The next thing is to always carry flood insurance, but I thought that I could only get flood insurance if it was required by my bank.

This is one of the biggest myths about flood insurance. It's also one of the things that flood victims in Houston Texas, Nebraska City Nebraska, and Tulsa Oklahoma knew before losing everything to a flood in 2019.

So what are the flood insurance options in Covington Georgia?

It's important to understand that all parts of Newton County participate in the National Flood Insurance Program. So this means that NFIP and private flood insurance are available.

So who qualifies for what?

Since this is a participating community everyone qualifies for the National Flood Insurance Program.You really have 7 NFIP communities in the Covington area.

1. Newton county
2. City of Porterdale
3. City of Mansfield
4. City of Oxford
5. City of Covington
6. City of Newborn
7. City of Social Circle
8. City of Jersey

Areas like Riverside RV park that received repeated flooding may have this as their only option.

Generally one of the things that can disqualify you for private flood insurance in Covington Georgia are claims. Some carriers only care if there have been claims within the last 5 years and others will disqualify you if there has ever been a claim on the property.

Something else thats important to know is that you may only qualify for private flood insurance if you have a non FHA loan. FHA is the only loan type in Covington GA that requires all flood insurance to go through the National Flood Insurance Program.

So what about coverages?

There can be a big difference in coverages between the National Flood Insurance Program and private flood insurance. One difference is the National Flood Insurance Program maxes residential building coverage out at $250,000 while private flood can go into the millions.

It's important to know that since NFIP maxes residential coverage out at $250,000 that banks can not currently require more coverage than that per structure.

So what about protecting your belongings? Thats one of the biggest things we hear from flood victims everyday. They say what cost me so much money was replacing my belongings.

The National Flood Insurance Program maxes personal belongings coverage out at $100,000 while private flood insurance generally will offer up to $500,000 in most situations.

So we have discussed what flood insurance options are available in Covington Georgia? The real question everybody wants to know is how long do i have to wait.

It's not uncommon for people to wait until its flooding to try to obtain flood insurance. However most people are unaware of the different wait periods. There is really only one situation where there is no wait period for flood insurance and that is when it is for a loan closing.

Outside of this the National Flood Insurance Program has a standard 30 day wait period. Private flood insurance companies generally have a wait period that ranges from 5 to 15 days.

So it's important to understand that if you wait until its flooding in Covington Georgia or other areas of newton county to get flood insurance then it might be too late.

We mentioned what else you can do to prepare earlier. One thing is understanding your flood insurance policy. You may have loss avoidance built into your policy.

This helps reimburse up to a $1000 for preventative measures like putting sand bags around your property or moving belongings to higher ground.

So maybe you have more questions about other flood prone areas in Covington Georgia or Newton county? Maybe you want to see what flood insurance options are available to you? Then make sure to visit our website. You can also check out our daily flood education videos on our YouTube channel or Facebook page.

 

 

There is a lot of flood insurance fancy terms and phrases that go into the industry. Sometimes this can get confusing or overwhelming. We want to avoid this and really just simplify flood insurance for everyone.

For this article, we want to talk about what loss runs really are. We also want to talk about how to impact flood insurance rates and we also want to show you how we can help you solve this problem.

What Are Loss Runs?

Let's just throw out the window all the fancy language when it comes to this. Loss runs are basically a list of any flood losses and/or flood claims that occurred in the insured property.

This means that if your property got flooded or if a claim was filed under it, that would be included in this recorded list. It's important to remember, that since we're talking about flood loss and flood claims, the list won't just include the claims you filed as an owner.

The thing about loss runs is that they can become a basis for understanding your flood risks and even flood insurance premiums.

So how do you find the loss runs for your property?

FINDING LOSS RUNS

Sometimes, an insurance company can ask you for a copy of your property's list of flood loss or loss runs. When it comes to private flood insurance, getting a loss run for the property. This is because some carriers may not keep track of the flood claims and flood loss that occurred on a property.

On the other hand, when it comes to the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP), they can provide the loss run for a property. The list can generally start from 1970 up to the most recent one.

It's important to note however that they will only provide a loss run for the current owner of the property. This means that if you're scouting for a home and the closing hasn't been made, yet, you can't really request FEMA and the NFIP to provide you a loss run copy.

IMPACTS OF LOSS RUNS

Not having a clear view of your flood losses can mean that your flood insurance carrier may change your rates to higher flood insurance premiums due to the unknown flood risks in the property.

This is why it's important to send a signed No Loss Letter which basically says that there have been no flood loss or flood claims made on your property to the best of your knowledge.

One of the impacts of knowing your loss runs for a property is that you also get an idea of your potential flood insurance premium. This is especially true since FEMA and NFIP as they have what we call a Claim Variable. Where they will do a review of how many claims are made on the property in the last ten years regardless of the owner. This is what's called a 10-Year lookback.

We've seen how this can negatively impact a property owner. We recently had a client whose policy was non-renewed or simply rejected upon renewal just because it slipped under their radar that a $200,000 flood claim was previously made on their home insured with a flood policy. We had to help them find another option to get flood insurance.

HELPING YOU WITH LOSS RUNS

The first thing you have to do is to communicate with an insurance broker or flood insurance specialist to help you understand your flood risks. They can also help you get a No Loss Form or Letter sent to your new carrier so that you avoid getting blindsided by unknown claims.

This way, we can also help you navigate through these flood losses so that you can expect how your flood insurance premiums will turn out. Some steps would include minimizing your property's flood risk in order to get the best flood insurance option and be confident with your flood policy's premium rates.

If you want to learn how to navigate your property's loss runs, just follow these three simple steps:

• Fill out this form —
• Talk with our flood education specialist.
• Get back to the important things in your life.

Recently I was shopping at a local grocery store. I went to grab some eggs for my family's weekly homemade breakfast. As I picked up the eggs I felt like I had been electrocuted when I saw the price of $8.99 for a dozen eggs. Then I grabbed some milk with just as much shock!

Really, it's a good thing that I buy our meat in bulk or I might have not survived this trip to the grocery store.

It got me thinking about my flood insurance renewal coming up. Are we going to be just as shocked by the pricing of flood insurance policies in the future? Today, we are going to discuss the past and future when it comes to flood insurance pricing.

You can watch a video on this topic below or by clicking here:

Let's take a look down memory lane before the National Flood Insurance Program (NFIP) had all these changes with Risk Rating 2.0 and the advancements of private flood insurance. Historically, flood insurance pricing was built using the following things:

• Foundation type
• Flood zone
• Type of building
• Elevations based on an elevation certificate

So, if we had 2 properties with the same foundation type and elevation, then the rate might be the same.

FUTURE OF FLOOD INSURANCE

However, the future is now here where things like claims history, type of flooding, and flooding frequency are having major impacts on flood insurance rates for property owners and insurance agents. Even the replacement cost of a building is having an impact on flood insurance renewal pricing.

One thing that is driving this is the rapid change of flood risks for low-risk and high-risk flood areas. Property characteristics are playing a bigger role in how current flood insurance pricing is built with federal flood insurance and private flood insurance.

Flood zones are now having minimal impacts on the cost of flood insurance and things like historical flood damage are having a bigger impact. As a property owner, it's important to know what impacts these rates so you can keep as much money in your pocket as possible. 

We didn't come here to make you feel like the world is ending — it might if it keeps flooding. However, in the meantime, let's talk about what you can do to keep your flood insurance pricing more stable.

KEEPING THE BEST FLOOD PRICING

One thing is making sure that an accurate replacement cost calculator is being used to determine the coverage you need. While there can be some premium discounts like the Community Rating System (CRS) discount and mitigation discount, the greatest impact on your flood pricing depends on the flood insurance option you're going for.

Traditionally, if you had something like an FHA loan, VA loan, or even a USDA loan then you had one option available; you were forced to the National Flood Insurance Program (NFIP).

However, as of December 21, 2022, these loans now allow private flood insurance. This means you could possibly see up to a 40% decrease in flood insurance simply by picking a private flood insurance option.

Is this going to give you the same building and content coverage as you have now? It might actually give you more coverage as residential flood insurance coverage is not limited to $250,000 on building coverage and $100,000 on contents coverage.

It's also important to know not all private flood insurance company options are the same. One might have higher pricing than others. One might offer more coverage than others.

This is why it's important to look at all the private flood insurance options at each flood insurance renewal date. Some private flood insurance companies look at these things on your flood insurance:

• Flood type
• Flood risk variables
• Flood frequency

Unlike the National Flood Insurance Program's policy assumption process property changes in ownership could have a big impact on flood insurance rates.

Almost every week I speak with someone who thinks their rate will be the same as the current owner. However, with some private flood insurance companies this couldn't be further from the truth.

We can all agree that flood events are happening more often across the country and flood insurance claims are coming in at an all-time high. So no one should be shocked about the changes to flood insurance premiums.

It's important to know many flood insurance premiums across the country are actually going down. FEMA's new rating methodology has shown this across the country over the last year.

If you want to learn more about flood insurance pricing click here. You can also visit the flood learning center.

If you are ready to take the next steps to get the right flood insurance coverage then there are three simple steps.

• Fill out this form —
• Talk with our flood education specialist.
• Get back to the important things in your life.