Elevation certificates are commonly associated with flood insurance, but they are not always required. In some situations, an elevation certificate may provide little to no benefit when determining flood insurance requirements or pricing. In this video, The Flood Insurance Guru highlights three specific scenarios that may indicate an elevation certificate is not necessary.
Understanding these signs can help homeowners avoid unnecessary costs while still staying compliant with flood insurance guidelines.
1. There Is No Base Flood Elevation Established
One key indicator is when a Base Flood Elevation (BFE) has not been established for a property’s flood zone. The BFE represents the expected height floodwaters could reach during a base flood event. According to the Federal Emergency Management Agency (FEMA), some flood zones—such as certain Zone A areas—do not have an assigned BFE.
When no BFE exists, elevation certificates often cannot be used effectively for flood insurance rating purposes. In these cases, insurers typically rely on other rating methods rather than elevation data, making the certificate unnecessary.
2. The Property Has a Below-Grade Foundation
Another sign is when a structure is built with a below-grade foundation, meaning the lowest floor is below ground level on all sides. FEMA defines below-grade structures as buildings where the floor is entirely below the adjacent ground.
For flood insurance rating, below-grade foundations generally limit the usefulness of elevation certificates because the structure is already considered below flood levels. As a result, providing elevation data may not reduce premiums or change underwriting requirements.
3. Servicing Equipment Is Located Below the Flood Level
Servicing equipment such as HVAC units, water heaters, or electrical panels can also affect whether an elevation certificate is beneficial. If this equipment is located below the Base Flood Elevation or expected flood level, insurers often assume a higher flood risk regardless of the home’s overall elevation.
FEMA guidelines emphasize the importance of equipment placement when assessing flood damage potential. In these situations, an elevation certificate may not offer meaningful savings or changes to policy requirements.
Final Thoughts
Elevation certificates are valuable tools in many flood insurance scenarios, but they are not always necessary. Factors like the absence of a Base Flood Elevation, below-grade foundations, and the placement of servicing equipment can reduce their usefulness. By understanding these conditions, homeowners can make more informed decisions.
The Flood Insurance Guru helps break down these complex flood insurance topics so homeowners can better understand FEMA guidelines and avoid unnecessary steps.
Watching the video above will give you a quick breakdown of these signs and how they may apply to your specific situation.
