As the storms keep coming, the changes to federal flood insurance come with it as well. Today, we want to unpack the upcoming changes to Flood Insurance Rate Maps (FIRM) to one of the cities with a rich agricultural history, Saint Petersburg, Florida.

Florida Flood Insurance: St. Petersburg Flood Maps of August 2021

We will understand the good, the bad, and the ugly changes coming to this town and what it means for flood insurance for its locals.

Saint Petersburg, Florida

When talking about the Sunshine State and floods, the first thing you might think about is how it has become a hotbed for storms and tornadoes due to its coastal nature. At the time of writing this blog, Florida is being devastated by floods due to severe storms moving in Southern areas of Florida.

Today, we want to unpack the upcoming flood map changes to Saint Petersburg (FL) and although zone designation Flood Insurance Rate Map (FIRM) won't really impact your flood insurance rates with the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP), it's important to always keep in mind that this will be used for a regulatory standpoint.

Generally, this still means that if you're in a high-risk flood zone, also known as the special flood hazard areas (SFHA), you're still expected to carry mandatory flood insurance for your property.

You can watch our video on Saint Petersburg flood insurance rate maps update below while reading:

So what are the upcoming changes to Saint Petersburg on August 24th, 2021?

Florida Flood Insurance: St. Petersburg Flood Maps of August 2021

The Good

When it comes to good changes with this new flood map update, we'll be talking about the movement of properties impacted in the city. The good change generally means that buildings and houses that will be getting the best deal out of the floodplain mapping that FEMA is producing.

To be more specific, about 8,216 property owners will have their properties move out of a high-risk flood zone and into the low-risk flood zones. This is what FEMA calls the "in to out" movement. Some would call this moving to a Flood Zone X.

Low-risk flood zones are also known as the preferred flood zone or non-mandatory zones since this is where mortgage companies and the federal government would stop requiring homeowners to purchase flood insurance.

Yes, this means that 8,216 property owners can choose not to purchase flood insurance for their property however, fair warning to everyone, FEMA had constantly reported that 30% of the flood insurance claims come from these low-risk flood areas.

Simply put, this means that you're not really exempted from experiencing floods at all. We've covered this in our previous episode when we talked about the reasons why you might be flooded in a low-risk zone.

The Bad

Now, if there's good news, there's also bad news. This comes in the form of the opposite with the good movement that we're seeing which is what FEMA calls the "out to in" movement. This is generally because your property that wasn't in a high-risk zone or special flood hazard area (SFHA) will be moved into the SFHA and high-risk zones. Some would call this moving from Flood Zone X to Flood Zone A.

Only 4,164 properties will be impacted by this change in FEMA Flood Maps to Saint Petersburg. This is bad for a couple of reasons. One, since FEMA and the National Flood Insurance Program (NFIP) runs through a lot of flood data, they are seeing that your property or the general area that it's in has received an increase in current flood risk as well future flood risk.

Another bad thing about this is that you will be required to start carrying a mandatory flood insurance purchase for your property because of the higher risks it's presenting. Let's be honest, being in a high-risk flood zone or the SFHA can be very expensive when it comes to flood insurance premiums in our current NFIP setup especially if you have a relatively bigger or more expensive property.

The Ugly

Lastly, we still have to discuss the biggest change and the ugliest among these three. The ugly change represents the "in to in" movement. This means that a property that's already in a high-risk flood zone will be mapped into a higher-risk flood zone. You can call this "moving from Flood Zone A to Flood Zone AE".

This will impact about 152,572 properties in Saint Petersburg which is a very huge number. In fact, we rarely see an "in to in" movement that comprises the biggest chunk within these three changes.

However, instead of worrying about a possible flood insurance rate increase (which will disappear by the time NFIP Risk Rating 2.0 kicks in), this simply means that when something like Tropical Storm Elsa happens again, you might face a bigger and more severe flood damage to your property.

Like the bad change, this also means that you have to carry a flood insurance policy on your property to make sure that it's protected at all times. This can also mean higher flood premiums in the current version of the National Flood Insurance Program (NFIP) for when you insure your property and since this will be a mandatory flood insurance purchase, you definitely have to prepare your wallet for it.

There are ways to make these bad and ugly changes easier to manage, however. This starts with your preferred flood insurance option: the National Flood Insurance Program (NFIP) or the Private Flood market. Let's talk more about these two.

Florida Flood Insurance: St. Petersburg Flood Maps of August 2021

The NFIP

The National Flood Insurance Program (NFIP) is purely managed by the federal government since this is FEMA's answer to flood insurance. An NFIP flood policy can get you flood coverage on both your dwelling and the contents within it. When we say dwelling, this simply pertains to either the residential property or commercial building that you're trying to insure with NFIP and FEMA; contents will be more about the personal property and items you have inside the insured building.

There is a coverage limit when it comes to federal flood policies. Flood damage to buildings will be covered to a maximum of $250,000 for residential policies and can only go up to $500,000 maximum if it's for a commercial property. Regardless of the type of property you have written, you can expect to get a $100,000 maximum contents coverage from an NFIP policy.

There's also what's called the Increased Cost of Compliance (ICC) coverage. This is a $30,000 additional coverage for your property in order to make sure that there are flood mitigation efforts made on the property according to the federal government's standards.

Generally, this can include sandbagging your property, installing floodproofing walls, raising your lowest floor from the base flood elevation levels, and putting flood openings. The labor that goes into making these mitigation efforts happen will also be covered under the ICC.

Florida Flood Insurance: St. Petersburg Flood Maps of August 2021

The good thing about the NFIP and FEMA is that they won't really push you immediately to the waters. Instead, they will allow you to ease into the possible flood insurance rate changes you'll be getting with your new flood zone. This is what's called newly mapped rates where FEMA will have you pay a lower flood rate or premium on your first year after the flood map update. This is also known as the Preferred Risk Policy (PRP) and will slowly start to increase until you meet the actual flood insurance premium expected to be paid for in your new flood zone.

There are also perks with your participating community in Saint Petersburg. A participating community gets access to federal flood insurance and disaster assistance, but more importantly, you also get to work with your community on raising your Community Rating System (CRS) score. The CRS measures and rewards the overall flood mitigation efforts done by the community according to FEMA's standards on floodplain management. Simply put, the higher your CRS score is, the bigger the flood insurance discount you'll get from FEMA and the NFIP.

You can start enjoying your NFIP policy after a 30-day waiting period from the flood insurance purchase.

Florida Flood Insurance: St. Petersburg Flood Maps of August 2021

The Private Flood

If the federal flood insurance option doesn't really work for you then you can manage this new floodplain mapping through the private flood insurance market. It's important to note that this market will solely be managed and provided by private insurance companies which generally means that the red tapes FEMA and NFIP has to go through won't be there.

The first thing you'll immediately see with the private flood market is that there are significantly shorter waiting periods for your flood policy. Once you have everything settled and paid for, a private flood insurance policy can take effect on 7 or up to 14 days maximum. 

Another good thing coming out of private flood insurance is that there are no coverage limits. This means that you won't really need to stress over how to get covered for a $500,000 home since it will be fully covered by your policy. This is the same with contents coverage and you'll also get additional coverages like replacement costs, additional living expenses, and loss of use.

Fair warning, it's a known issue in the private insurance market in general that they will do moratoriums when there are risks that are too high for their comforts. This simply means that they will either put a stop or take a break from providing flood insurance policies to a certain area that has higher risks. There's also a chance that you might not get to buy flood insurance from them once they decide to non-renew your policy.

At the end of the day, the choice of where you'll be getting flood insurance depends on you. What's really important is that you know your flood risks and have enough protection from all possible outcomes of a flood event such as flood loss and flood damage.

Get a quote from the Flood Insurance Guru!

If you have questions on these new FEMA flood maps, maybe you want to determine your flood zone, knowing your area's average flood depths and flood data, or anything about flood, reach out to us by clicking below.

Get Your Flood Risk Score Here!

Contact Us

Remember, we have an educational background in flood mitigation and we want to help you understand flood risks, your flood insurance, and mitigating your property long-term. 

Get a Quote!

As the storms keep coming, the changes to federal flood insurance come with it as well. Today, we want to unpack the upcoming changes to Flood Insurance Rate Maps (FIRM) to one of the cities with a rich agricultural history, Hart, Michigan.

Michigan Flood Insurance: Hart Flood Map Updates for August 2021

We will understand the good, the bad, and the ugly changes coming to this town and what it means for flood insurance for its locals.

Hart, Michigan

One of the most resounding memory, when you talk about floods and Hart, was what happened in 2017 when the Tuolumne River rose and inundated most of the areas in the city. Just recently this year, we also saw flooding due to storms that also knocked down trees.

Today, we want to unpack the upcoming flood map changes to Hart (MI) and although zone designation Flood Insurance Rate Map (FIRM) won't really impact your flood insurance rates with the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP), it's important to always keep in mind that this will be used for a regulatory standpoint.

Generally, this still means that if you're in a high-risk flood zone, also known as the special flood hazard areas (SFHA), you're still expected to carry mandatory flood insurance for your property.

You can watch our video on Hart flood insurance rate maps update below while reading:

So what are the upcoming changes to Hart City on August 24th, 2021?

Michigan Flood Insurance: Hart Flood Map Updates for August 2021

The Good

When it comes to good changes with this new flood map update, we'll be talking about the movement of properties impacted in the city. The good change generally means that buildings and houses that will be getting the best deal out of the floodplain mapping that FEMA is producing.

To be more specific, about 28 property owners will have their properties move out of a high-risk flood zone and into the low-risk flood zones. This is what FEMA calls the "in to out" movement. Some would call this moving to a Flood Zone X.

Low-risk flood zones are also known as the preferred flood zone or non-mandatory zones since this is where mortgage companies and the federal government would stop requiring homeowners to purchase flood insurance.

Yes, this means that 28 property owners can choose not to purchase flood insurance for their property however, fair warning to everyone, FEMA had constantly reported that 30% of the flood insurance claims come from these low-risk flood areas.

Simply put, this means that you're not really exempted from experiencing floods at all. We've covered this in our previous episode when we talked about the reasons why you might be flooded in a low-risk zone.

The Bad

Now, if there's good news, there's also bad news. This comes in the form of the opposite with the good movement that we're seeing which is what FEMA calls the "out to in" movement. This is generally because your property that wasn't in a high-risk zone or special flood hazard area (SFHA) will be moved into the SFHA and high-risk zones. Some would call this moving from Flood Zone X to Flood Zone A.

Only 289 properties will be impacted by this change in FEMA Flood Maps to Hart. This is bad for a couple of reasons. One, since FEMA and the National Flood Insurance Program (NFIP) runs through a lot of flood data, they are seeing that your property or the general area that it's in has received an increase in current flood risk as well future flood risk.

Another bad thing about this is that you will be required to start carrying a mandatory flood insurance purchase for your property because of the higher risks it's presenting. Let's be honest, being in a high-risk flood zone or the SFHA can be very expensive when it comes to flood insurance premiums in our current NFIP setup especially if you have a relatively bigger or more expensive property.

The Ugly

Lastly, we still have to discuss the biggest change and the ugliest among these three. The ugly change represents the "in to in" movement. This means that a property that's already in a high-risk flood zone will be mapped into a higher-risk flood zone. You can call this "moving from Flood Zone A to Flood Zone AE".

This will impact about 1,813 properties in Hart which is a very huge number. In fact, we rarely see an "in to in" movement that comprises the biggest chunk within these three changes. However, instead of worrying about a possible flood insurance rate increase (which will disappear by the time NFIP Risk Rating 2.0 kicks in), this simply means that when something like Tropical Storm Elsa happens again, you might face a bigger and more severe flood damage to your property.

Like the bad change, this also means that you have to carry a flood insurance policy on your property to make sure that it's protected at all times. This can also mean higher flood premiums in the current version of the National Flood Insurance Program (NFIP) for when you insure your property and since this will be a mandatory flood insurance purchase, you definitely have to prepare your wallet for it.

There are ways to make these bad and ugly changes easier to manage, however. This starts with your preferred flood insurance option: the National Flood Insurance Program (NFIP) or the Private Flood market. Let's talk more about these two.

Michigan Flood Insurance: Hart Flood Map Updates for August 2021

The NFIP

The National Flood Insurance Program (NFIP) is purely managed by the federal government since this is FEMA's answer to flood insurance. An NFIP flood policy can get you flood coverage on both your dwelling and the contents within it. When we say dwelling, this simply pertains to either the residential property or commercial building that you're trying to insure with NFIP and FEMA; contents will be more about the personal property and items you have inside the insured building.

There is a coverage limit when it comes to federal flood policies. Flood damage to buildings will be covered to a maximum of $250,000 for residential policies and can only go up to $500,000 maximum if it's for a commercial property. Regardless of the type of property you have written, you can expect to get a $100,000 maximum contents coverage from an NFIP policy.

There's also what's called the Increased Cost of Compliance (ICC) coverage. This is a $30,000 additional coverage for your property in order to make sure that there are flood mitigation efforts made on the property according to the federal government's standards.

Generally, this can include sandbagging your property, installing floodproofing walls, raising your lowest floor from the base flood elevation levels, and putting flood openings. The labor that goes into making these mitigation efforts happen will also be covered under the ICC.

Michigan Flood Insurance: Hart Flood Map Updates for August 2021

The good thing about the NFIP and FEMA is that they won't really push you immediately to the waters. Instead, they will allow you to ease into the possible flood insurance rate changes you'll be getting with your new flood zone. This is what's called newly mapped rates where FEMA will have you pay a lower flood rate or premium on your first year after the flood map update. This is also known as the Preferred Risk Policy (PRP) and will slowly start to increase until you meet the actual flood insurance premium expected to be paid for in your new flood zone.

There are also perks with your participating community in Hart. A participating community gets access to federal flood insurance and disaster assistance, but more importantly, you also get to work with your community on raising your Community Rating System (CRS) score. The CRS measures and rewards the overall flood mitigation efforts done by the community according to FEMA's standards on floodplain management. Simply put, the higher your CRS score is, the bigger the flood insurance discount you'll get from FEMA and the NFIP.

You can start enjoying your NFIP policy after a 30-day waiting period from the flood insurance purchase.

Michigan Flood Insurance: Hart Flood Map Updates for August 2021

The Private Flood

If the federal flood insurance option doesn't really work for you then you can manage this new floodplain mapping through the private flood insurance market. It's important to note that this market will solely be managed and provided by private insurance companies which generally means that the red tapes FEMA and NFIP has to go through won't be there.

The first thing you'll immediately see with the private flood market is that there are significantly shorter waiting periods for your flood policy. Once you have everything settled and paid for, a private flood insurance policy can take effect on the same day or up to 14 days maximum. 

Another good thing coming out of private flood insurance is that there are no coverage limits. This means that you won't really need to stress over how to get covered for a $500,000 home since it will be fully covered by your policy. This is the same with contents coverage and you'll also get additional coverages like replacement costs, additional living expenses, and loss of use.

Fair warning, it's a known issue in the private insurance market in general that they will do moratoriums when there are risks that are too high for their comforts. This simply means that they will either put a stop or take a break from providing flood insurance policies to a certain area that has higher risks. There's also a chance that you might not get to buy flood insurance from them once they decide to non-renew your policy.

At the end of the day, the choice of where you'll be getting flood insurance depends on you. What's really important is that you know your flood risks and have enough protection from all possible outcomes of a flood event such as flood loss and flood damage.

Get a quote from the Flood Insurance Guru!

If you have questions on these new FEMA flood maps, maybe you want to determine your flood zone, knowing your area's average flood depths and flood data, or anything about flood, reach out to us by clicking below.

Get Your Flood Risk Score Here!

Contact Us

Remember, we have an educational background in flood mitigation and we want to help you understand flood risks, your flood insurance, and mitigating your property long-term. 

Get a Quote!

As the storms keep coming, the changes to federal flood insurance come with it as well. Today, we want to unpack the upcoming changes to Flood Insurance Rate Maps (FIRM) to one of the cities with a rich agricultural history, Modest, California.

California Flood Insurance: Modesto Flood Map Updates for August 2021

We will understand the good, the bad, and the ugly changes coming to this town and what it means for flood insurance for its locals.

Modesto, CA

One of the most resounding memory, when you talk about floods and Modesto, was what happened in 2017 when the Tuolumne River rose and inundated most of the areas in the city. Just recently this year, we also saw flooding due to storms that also knocked down trees.

Today, we want to unpack the upcoming flood map changes to Modesto (CA) and although zone designation Flood Insurance Rate Map (FIRM) won't really impact your flood insurance rates with the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP), it's important to always keep in mind that this will be used for a regulatory standpoint.

Generally, this still means that if you're in a high-risk flood zone, also known as the special flood hazard areas (SFHA), you're still expected to carry mandatory flood insurance for your property.

You can watch our video on Modesto flood insurance rate maps update below while reading:

So what are the upcoming changes to Modesto City on August 24th, 2021?

Arizona Flood Insurance: Prescott Flood Map Updates for August 2021.

The Good

When it comes to good changes with this new flood map update, we'll be talking about the movement of properties impacted in the city. The good change generally means that buildings and houses that will be getting the best deal out of the floodplain mapping that FEMA is producing.

To be more specific, about 100 property owners will have their properties move out of a high-risk flood zone and into the low-risk flood zones. This is what FEMA calls the "in to out" movement. Some would call this moving to a Flood Zone X.

Low-risk flood zones are also known as the preferred flood zone or non-mandatory zones since this is where mortgage companies and the federal government would stop requiring homeowners to purchase flood insurance.

Yes, this means that 100 property owners can choose not to purchase flood insurance for their property however, fair warning to everyone, FEMA had constantly reported that 30% of the flood insurance claims come from these low-risk flood areas.

Simply put, this means that you're not really exempted from experiencing floods at all. We've covered this in our previous episode when we talked about the reasons why you might be flooded in a low-risk zone.

The Bad

Now, if there's good news, there's also bad news. This comes in the form of the opposite with the good movement that we're seeing which is what FEMA calls the "out to in" movement. This is generally because your property that wasn't in a high-risk zone or special flood hazard area (SFHA) will be moved into the SFHA and high-risk zones. Some would call this moving from Flood Zone X to Flood Zone A.

Only 333 properties will be impacted by this change in FEMA Flood Maps to Modesto. This is bad for a couple of reasons. One, since FEMA and the National Flood Insurance Program (NFIP) runs through a lot of flood data, they are seeing that your property or the general area that it's in has received an increase in current flood risk as well future flood risk.

Another bad thing about this is that you will be required to start carrying a mandatory flood insurance purchase for your property because of the higher risks it's presenting. Let's be honest, being in a high-risk flood zone or the SFHA can be very expensive when it comes to flood insurance premiums in our current NFIP setup especially if you have a relatively bigger or more expensive property.

The Ugly

Lastly, we still have to discuss the biggest change and the ugliest among these three. The ugly change represents the "in to in" movement. This means that a property that's already in a high-risk flood zone will be mapped into a higher-risk flood zone. You can call this "moving from Flood Zone A to Flood Zone AE".

This will impact about 2,357 properties in Modesto which is a very huge number. In fact, we rarely see an "in to in" movement that comprises the biggest chunk within these three changes. However, instead of worrying about a possible flood insurance rate increase (which will disappear by the time NFIP Risk Rating 2.0 kicks in), this simply means that when something like Tropical Storm Elsa happens again, you might face a bigger and more severe flood damage to your property.

Like the bad change, this also means that you have to carry a flood insurance policy on your property to make sure that it's protected at all times. This can also mean higher flood premiums in the current version of the National Flood Insurance Program (NFIP) for when you insure your property and since this will be a mandatory flood insurance purchase, you definitely have to prepare your wallet for it.

There are ways to make these bad and ugly changes easier to manage, however. This starts with your preferred flood insurance option: the National Flood Insurance Program (NFIP) or the Private Flood market. Let's talk more about these two.

California Flood Insurance: Modesto Flood Map Updates for August 2021

The NFIP

The National Flood Insurance Program (NFIP) is purely managed by the federal government since this is FEMA's answer to flood insurance. An NFIP flood policy can get you flood coverage on both your dwelling and the contents within it. When we say dwelling, this simply pertains to either the residential property or commercial building that you're trying to insure with NFIP and FEMA; contents will be more about the personal property and items you have inside the insured building.

There is a coverage limit when it comes to federal flood policies. Flood damage to buildings will be covered to a maximum of $250,000 for residential policies and can only go up to $500,000 maximum if it's for a commercial property. Regardless of the type of property you have written, you can expect to get a $100,000 maximum contents coverage from an NFIP policy.

There's also what's called the Increased Cost of Compliance (ICC) coverage. This is a $30,000 additional coverage for your property in order to make sure that there are flood mitigation efforts made on the property according to the federal government's standards.

Generally, this can include sandbagging your property, installing floodproofing walls, raising your lowest floor from the base flood elevation levels, and putting flood openings. The labor that goes into making these mitigation efforts happen will also be covered under the ICC.

Arizona Flood Insurance: Prescott Flood Map Updates for August 2021.

The good thing about the NFIP and FEMA is that they won't really push you immediately to the waters. Instead, they will allow you to ease into the possible flood insurance rate changes you'll be getting with your new flood zone. This is what's called newly mapped rates where FEMA will have you pay a lower flood rate or premium on your first year after the flood map update. This is also known as the Preferred Risk Policy (PRP) and will slowly start to increase until you meet the actual flood insurance premium expected to be paid for in your new flood zone.

There are also perks with your participating community in Modesto. A participating community gets access to federal flood insurance and disaster assistance, but more importantly, you also get to work with your community on raising your Community Rating System (CRS) score. The CRS measures and rewards the overall flood mitigation efforts done by the community according to FEMA's standards on floodplain management. Simply put, the higher your CRS score is, the bigger the flood insurance discount you'll get from FEMA and the NFIP.

You can start enjoying your NFIP policy after a 30-day waiting period from the flood insurance purchase.

California Flood Insurance: Modesto Flood Map Updates for August 2021

The Private Flood

If the federal flood insurance option doesn't really work for you then you can manage this new floodplain mapping through the private flood insurance market. It's important to note that this market will solely be managed and provided by private insurance companies which generally means that the red tapes FEMA and NFIP has to go through won't be there.

The first thing you'll immediately see with the private flood market is that there are significantly shorter waiting periods for your flood policy. Once you have everything settled and paid for, a private flood insurance policy can take effect on the same day or up to 14 days maximum. 

Another good thing coming out of private flood insurance is that there are no coverage limits. This means that you won't really need to stress over how to get covered for a $500,000 home since it will be fully covered by your policy. This is the same with contents coverage and you'll also get additional coverages like replacement costs, additional living expenses, and loss of use.

Fair warning, it's a known issue in the private insurance market in general that they will do moratoriums when there are risks that are too high for their comforts. This simply means that they will either put a stop or take a break from providing flood insurance policies to a certain area that has higher risks. There's also a chance that you might not get to buy flood insurance from them once they decide to non-renew your policy.

At the end of the day, the choice of where you'll be getting flood insurance depends on you. What's really important is that you know your flood risks and have enough protection from all possible outcomes of a flood event such as flood loss and flood damage.

Get a quote from the Flood Insurance Guru!

If you have questions on these new FEMA flood maps, maybe you want to determine your flood zone, knowing your area's average flood depths and flood data, or anything about flood, reach out to us by clicking below.

Get Your Flood Risk Score Here!

Contact Us

Remember, we have an educational background in flood mitigation and we want to help you understand flood risks, your flood insurance, and mitigating your property long-term. 

Get a Quote!

As the storms keep coming, the changes to federal flood insurance come with it as well. Today, we want to unpack the upcoming changes to Flood Insurance Rate Maps (FIRM) in Everybody's Home Town, Prescott, Arizona. We will understand the good, the bad, and the ugly changes coming to this town and what it means for flood insurance for its locals.

Arizona Flood Insurance: Prescott Flood Map Updates for August 2021.

Prescott, AZ

Prescott is no stranger to flooding especially when we talk about more pluvial ones like flash flooding due to rainfall. Earlier this month, Yavapai County and the Prescott Valley faced heavy rainfall that immediately caused flooding to these two areas.

At the time of writing, multiple areas of Arizona like Phoenix and Prescott itself are under a flood watch warning due to the expected continuous rainfall from Hurricane Ida.

Today, we want to unpack the upcoming flood map changes to Prescott Arizona and although zone designation Flood Insurance Rate Map (FIRM) won't really impact your flood insurance rates with the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP), it's important to always keep in mind that this will be used for a regulatory standpoint.

Generally, this still means that if you're in a high-risk flood zone, also known as the special flood hazard areas (SFHA), you're still expected to carry mandatory flood insurance for your property.

So what are the upcoming changes to Prescott City on August 24th, 2021?

Arizona Flood Insurance: Prescott Flood Map Updates for August 2021.

The Good

When it comes to good changes with this new flood map update, we'll be talking about the movement of properties impacted in the city. The good change generally means that buildings and houses that will be getting the best deal out of the floodplain mapping that FEMA is producing.

To be more specific, about 107 property owners will have their properties move out of a high-risk flood zone and into the low-risk flood zones. This is what FEMA calls the "in to out" movement. Some would call this moving to a Flood Zone X.

Low-risk flood zones are also known as the preferred flood zone or non-mandatory zones since this is where mortgage companies and the federal government would stop requiring homeowners to purchase flood insurance.

Yes, this means that 107 property owners can choose not to purchase flood insurance for their property however, fair warning to everyone, FEMA had constantly reported that 30% of the flood insurance claims come from these low-risk flood areas.

Simply put, this means that you're not really exempted from experiencing floods at all. We've covered this in our previous episode when we talked about the reasons why you might be flooded in a low-risk zone.

The Bad

Now, if there's good news, there's also bad news. This comes in the form of the opposite with the good movement that we're seeing which is what FEMA calls the "out to in" movement. This is generally because your property that wasn't in a high-risk zone or special flood hazard area (SFHA) will be moved into the SFHA and high-risk zones. Some would call this moving from Flood Zone X to Flood Zone A.

Only 11 properties will be impacted by this change in FEMA Flood Maps to Prescott. This is bad for a couple of reasons. One, since FEMA and the National Flood Insurance Program (NFIP) runs through a lot of flood data, they are seeing that your property or the general area that it's in has received an increase in current flood risk as well future flood risk.

Another bad thing about this is that you will be required to start carrying a mandatory flood insurance purchase for your property because of the higher risks it's presenting. Let's be honest, being in a high-risk flood zone or the SFHA can be very expensive when it comes to flood insurance premiums in our current NFIP setup especially if you have a relatively bigger or more expensive property.

The Ugly

Lastly, we still have to discuss the biggest change and the ugliest among these three. The ugly change represents the "in to in" movement. This means that a property that's already in a high-risk flood zone will be mapped into a higher-risk flood zone. You can call this "moving from Flood Zone A to Flood Zone AE".

This will impact about 2,899 properties in Prescott which is a very huge number. In fact, we rarely see an "in to in" movement that comprises the biggest chunk within these three changes. However, instead of worrying about a possible flood insurance rate increase (which will disappear by the time NFIP Risk Rating 2.0 kicks in), this simply means that when something like Tropical Storm Elsa happens again, you might face a bigger and more severe flood damage to your property.

Like the bad change, this also means that you have to carry a flood insurance policy on your property to make sure that it's protected at all times. This can also mean higher flood premiums in the current version of the National Flood Insurance Program (NFIP) for when you insure your property and since this will be a mandatory flood insurance purchase, you definitely have to prepare your wallet for it.

There are ways to make these bad and ugly changes easier to manage, however. This starts with your preferred flood insurance option: the National Flood Insurance Program (NFIP) or the Private Flood market. Let's talk more about these two.

Arizona Flood Insurance: Prescott Flood Map Updates for August 2021.

The NFIP

The National Flood Insurance Program (NFIP) is purely managed by the federal government since this is FEMA's answer to flood insurance. An NFIP flood policy can get you flood coverage on both your dwelling and the contents within it. When we say dwelling, this simply pertains to either the residential property or commercial building that you're trying to insure with NFIP and FEMA; contents will be more about the personal property and items you have inside the insured building.

There is a coverage limit when it comes to federal flood policies. Flood damage to buildings will be covered to a maximum of $250,000 for residential policies and can only go up to $500,000 maximum if it's for a commercial property. Regardless of the type of property you have written, you can expect to get a $100,000 maximum contents coverage from an NFIP policy.

There's also what's called the Increased Cost of Compliance (ICC) coverage. This is a $30,000 additional coverage for your property in order to make sure that there are flood mitigation efforts made on the property according to the federal government's standards. Generally, this can include sandbagging your property, installing floodproofing walls, raising your lowest floor from the base flood elevation levels, and putting flood openings. The labor that goes into making these mitigation efforts happen will also be covered under the ICC.

Arizona Flood Insurance: Prescott Flood Map Updates for August 2021.

The good thing about the NFIP and FEMA is that they won't really push you immediately to the waters. Instead, they will allow you to ease into the possible flood insurance rate changes you'll be getting with your new flood zone. This is what's called newly mapped rates where FEMA will have you pay a lower flood rate or premium on your first year after the flood map update. This is also known as the Preferred Risk Policy (PRP) and will slowly start to increase until you meet the actual flood insurance premium expected to be paid for in your new flood zone.

There are also perks with your participating community in Prescott. A participating community gets access to federal flood insurance and disaster assistance, but more importantly, you also get to work with your community on raising your Community Rating System (CRS) score. The CRS measures and rewards the overall flood mitigation efforts done by the community according to FEMA's standards on floodplain management. Simply put, the higher your CRS score is, the bigger the flood insurance discount you'll get from FEMA and the NFIP.

You can start enjoying your NFIP policy after a 30-day waiting period from the flood insurance purchase.

The Private Flood

If the federal flood insurance option doesn't really work for you then you can manage this new floodplain mapping through the private flood insurance market. It's important to note that this market will solely be managed and provided by private insurance companies which generally means that the red tapes FEMA and NFIP has to go through won't be there.

The first thing you'll immediately see with the private flood market is that there are significantly shorter waiting periods for your flood policy. Once you have everything settled and paid for, a private flood insurance policy can take effect on the same day or up to 14 days maximum. 

Another good thing coming out of private flood insurance is that there are no coverage limits. This means that you won't really need to stress over how to get covered for a $500,000 home since it will be fully covered by your policy. This is the same with contents coverage and you'll also get additional coverages like replacement costs, additional living expenses, and loss of use.

Fair warning, it's a known issue in the private insurance market in general that they will do moratoriums when there are risks that are too high for their comforts. This simply means that they will either put a stop or take a break from providing flood insurance policies to a certain area that has higher risks. There's also a chance that you might not get to buy flood insurance from them once they decide to non-renew your policy.

At the end of the day, the choice of where you'll be getting flood insurance depends on you. What's really important is that you know your flood risks and have enough protection from all possible outcomes of a flood event such as flood loss and flood damage.

Get a quote from the Flood Insurance Guru!

If you have questions on these new FEMA flood maps, maybe you want to determine your flood zone, knowing your area's average flood depths and flood data, or anything about flood, reach out to us by clicking below.

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Remember, we have an educational background in flood mitigation and we want to help you understand flood risks, your flood insurance, and mitigating your property long-term. 

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As the storms keep coming, the changes to federal flood insurance come with it as well. Today, we want to unpack the upcoming changes to Flood Insurance Rate Maps (FIRM) in the Magic City, Birmingham, Alabama. We will understand the good, the bad, and the ugly changes coming to this town and what it means for flood insurance for its locals.

Alabama Flood Insurance: Birmingham Flood Map Updates

Birmingham, Alabama

Birmingham is still the city with the biggest population when it comes to the state of Alabama. However, Birmingham Alabama is dropping numbers — alongside Montgomery Alabama — when it comes to its population which according to AL.com. Huntsville City is coming to a very close second and might even dethrone the city anytime soon. This type of development and growth can also mean that flooding can drastically change as well. We've seen earlier just this year how Birmingham, Alabama was hit with massive floods due to heavy rainfall.

Hopefully, you also realize that you really don't need to be in a flood zone to get flooded. Just this week of August 16, we saw a lot of places in Georgia, North Carolina, and Florida devastated with flash floods from continuous rain.

Today, we want to unpack the upcoming flood map changes to Birmingham Alabama, and although zone designation Flood Insurance Rate Map (FIRM) won't really impact your flood insurance rates with the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP) in their upcoming new Risk Rating 2.0 program. It's important to always keep in mind that this will be used from a regulatory standpoint. Generally, this still means that if you're in a high-risk flood zone, also known as the special flood hazard areas (SFHA), you're still expected to carry mandatory flood insurance for your property.

So what are the upcoming changes to Birmingham City on September 24th, 2021?

Alabama Flood Insurance: Birmingham Flood Map Updates

The Good

When it comes to good changes with this new flood map update, we'll be talking about the movement of properties impacted in the city. The good change generally means that buildings and houses that will be getting the best deal out of the floodplain mapping that FEMA is producing.

To be more specific, about 2,994 property owners will have their properties move out of a high-risk flood zone and into the low-risk flood zones. This is what FEMA calls the "in to out" movement. Some would call this moving to a Flood Zone X.

Low-risk flood zones are also known as the preferred flood zone or non-mandatory zones since this is where mortgage companies and the federal government would stop requiring homeowners to purchase flood insurance.

Yes, this means that 2,994 property owners can choose not to purchase flood insurance for their property however, fair warning to everyone, FEMA had constantly reported that 30% of the flood insurance claims come from these low-risk flood areas.

Simply put, this means that you're not really exempted from experiencing floods at all. We've covered this in our previous episode when we talked about the reasons why you might be flooded in a low-risk zone.

The Bad

Now, if there's good news, there's also bad news. This comes in the form of the opposite with the good movement that we're seeing which is what FEMA calls the "out to in" movement. This is generally because your property that wasn't in a high-risk zone or special flood hazard area (SFHA) will be moved into the SFHA and high-risk zones. Some would call this "moving from Flood Zone X to Flood Zone A."

Only 157 properties will be impacted by this change in FEMA Flood Maps to Birmingham. This is bad for a couple of reasons. One, since FEMA and the National Flood Insurance Program (NFIP) runs through a lot of flood data, they are seeing that your property or the general area that it's in has received an increase in current flood risk and/or possible future flood risk.

Another bad thing about this is that you will be required to start carrying a mandatory flood insurance purchase for your property because of the higher risks it's presenting. Let's be honest, being in a high-risk flood zone or the SFHA can be very expensive when it comes to flood insurance premiums in our current NFIP setup especially if you have a relatively bigger or more expensive property.

The Ugly

Lastly, we still have to discuss the biggest change and the ugliest among these three. The ugly change represents the "in to in" movement. This means that a property that's already in a high-risk flood zone will be mapped into a higher-risk flood zone. You can call this "moving from Flood Zone A to Flood Zone AE."

This will impact about 12,889 properties in Birmingham which is a very huge number. In fact, we rarely see an "in to in" movement that comprises the biggest chunk within these three changes. However, instead of worrying about a possible flood insurance rate increase (which will disappear by the time NFIP Risk Rating 2.0 kicks in), this simply means that when something like Tropical Storm Elsa happens again, you might face a bigger and more severe flood damage to your property.

Like the bad change, this also means that you have to carry a flood insurance policy on your property to make sure that it's protected at all times. This can also mean higher flood premiums in the current version of the National Flood Insurance Program (NFIP) for when you insure your property and since this will be a mandatory flood insurance purchase, you definitely have to prepare your wallet for it.

There are ways to make these bad and ugly changes easier to manage however. This starts with your preferred flood insurance option: the National Flood Insurance Program (NFIP) or the Private Flood market. Let's talk more about these two.

Flood Insurance Options in Birmingham

The NFIP

The National Flood Insurance Program (NFIP) is purely managed by the federal government since this is FEMA's answer to flood insurance. An NFIP flood policy can get you flood coverage on both your dwelling and the contents within it. When we say dwelling, this simply pertains to either the residential property or commercial building that you're trying to insure with NFIP and FEMA; contents will be more about the personal property and items you have inside the insured building.

There is a coverage limit when it comes to federal flood policies. Flood damage to buildings will be covered to a maximum of $250,000 for residential policies and can only go up to $500,000 maximum if it's for a commercial property. Regardless of the type of property you have written, you can expect to get a $100,000 maximum contents coverage from an NFIP policy.

There's also what's called the Increased Cost of Compliance (ICC) coverage. This is a $30,000 additional coverage for your property in order to make sure that there are flood mitigation efforts made on the property according to the federal government's standards. Generally, this can include sandbagging your property, installing floodproofing walls, raising your lowest floor from the base flood elevation levels, and putting flood openings. The labor that goes into making these mitigation efforts happen will also be covered under the ICC.

Alabama Flood Insurance: Birmingham Flood Map Updates

The good thing about the NFIP and FEMA is that they won't really push you immediately to the waters. Instead, they will allow you to ease into the possible flood insurance rate changes you'll be getting with your new flood zone. This is what's called newly mapped rates where FEMA will have you pay a lower flood rate or premium on your first year after the flood map update. This is also known as the Preferred Risk Policy (PRP) and will slowly start to increase until you meet the actual flood insurance premium expected to be paid for in your new flood zone.

There are also perks with your participating community in Birmingham. A participating community gets access to federal flood insurance and disaster assistance, but more importantly, you also get to work with your community on raising your Community Rating System (CRS) score. The CRS measures and rewards the overall flood mitigation efforts done by the community according to FEMA's standards on floodplain management. Simply put, the higher your CRS score is, the bigger the flood insurance discount you'll get from FEMA and the NFIP.

You can start enjoying your NFIP policy after a 30-day waiting period from the flood insurance purchase.

The Private Flood

If the federal flood insurance option doesn't really work for you then you can manage this new floodplain mapping through the private flood insurance market. It's important to note that this market will solely be managed and provided by private insurance companies which generally means that the red tapes FEMA and NFIP has to go through won't be there.

The first thing you'll immediately see with the private flood market is that there are significantly shorter waiting periods for your flood policy. Once you have everything settled and paid for, a private flood insurance policy can take effect on the same day or up to 14 days maximum. 

Another good thing coming out of private flood is that there are no coverage limits. This means that you won't really need to stress over how to get covered for a $500,000 home since it will be fully covered by your policy. This is the same with contents coverage and you'll also get additional coverages like replacement costs, additional living expenses, and loss of use.

Fair warning, it's a known issue in the private insurance market in general that they will do moratoriums when there are risks that are too high for their comforts. This simply means that they will either put a stop or take a break from providing flood insurance policies to a certain area that has higher risks. There's also a chance that you might not get to buy flood insurance from them once they decide to non-renew your policy.

At the end of the day, the choice of where you'll be getting flood insurance depends on you. What's really important is that you know your flood risks and have enough protection from all possible outcomes of a flood event such as flood loss and flood damage.

If you have questions on these new FEMA flood maps, maybe you want to determine your flood zone, knowing your area's average flood depths and flood data, or anything about flood, reach out to us.

Get Your Flood Risk Score Here!

Remember, we have an educational background in flood mitigation and we want to help you understand flood risks, your flood insurance, and mitigating your property long-term. 

 

It's March 2nd 2020 and it feels like its been raining in Huntsville Alabama since the beginning of 2019. Realistically it has, 2019 was one of the wettest years on record.  February 2020 ranked in the top 10 for the wettest February's on record.

While 2019 still holds the record for most rainfall on record will the rain ever stop? hopefully.

All that rain is starting to have a major impact on flood insurance options in the Huntsville Alabama area and especially Madison county. Many private flood insurance companies have placed moratoriums in the area.

What exactly is a flood insurance moratorium?

Well this is when private flood insurance companies stop writing flood insurance in an area. Sometimes this can happen after significant flooding in an area until they can handle the claaims and then other times it can happen when the flood risk rises.

This is is exactly what's been happening in the Huntsville Alabama area for the last few months. Thankfully the National Flood Insurance Program does not put moratoriums in place. As long as you live in a participating community then you have access to flood insurance through the National Flood Insurance Program.

Its during times like this where a National Flood Insurance Program policy can feel like its worth gold.

Let's look at the Huntsville real estate market. The Madison Alabama area is one of the fastest growing areas in the country. Many of these areas are in high risk flood areas because of the Tennessee River. As you can imagine flood insurance could have a major impact on mortgage payments.

Let's look at a scenario where it could make or break someone selling a home. For example let's say you have two properties in the same neighborhood. One is investor owned and they paid cash, so they don't carry flood insurance. Then there is the other one who has a mortgage and has had flood insurance since before it was required.

You have the same potential buyer looking at these two properties but the flood insurance is a difference of more than $3000 a year.

Why in the world is that?

Well the person who has the mortgage has whats called a grandfathered policy which means those rates are no longer available because they took out flood insurance before the flood maps changed. The other property has to go off todays rates and does not get access to these grandfathered rates.

So of course if you are a buyer you are going to go with the property that has the cheaper flood insurance.

So why can the buyer get access to this same rate on one property but not the other?

This is whats called a policy assumption or policy transfer. This is when the policy is transferred from one buyer to the next because they have had continuous coverage.

Now you can see that National Flood Insurance Program policy is worth way more than you would have ever imagined.

So maybe you have questions about how to do a policy transfer or you want to understand flood insurance options in Huntsville? Then make sure to visit our website. You can also check out our daily flood education videos on our YouTube channel.

 

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