Lowering Flood Insurance Premiums on Under-Construction Properties
This video looks at builders' risk flood insurance and site maps.
One of the questions we get asked every day is how can I lower my builder's risk flood insurance premiums?
So we are going to answer that question in this video and blog.
Traditionally builder's risk also known as under-construction flood insurance has been pricey. Some of the average premiums we see across the country can be over $3000 a year.
Why is that?
Let's look at flood insurance policies where properties are under construction. In many situations, these properties do not have walls or a roof up yet. So there is not much to stop water from coming in.
This is probably why most of these policies do not offer traditional content coverage. It's also important to know when a property is under construction the deductible normally doubles. So if you choose a $5,000 deductible, you will likely have a $10,000.
Look I have distracted you from the original question with my ADHD.
So what can you do to lower the flood insurance pricing on these types of flood insurance policies?
There are a couple of things we are going to look at some have a bigger impact on private flood insurance than the National Flood Insurance Program.
The first thing is a site map or what we may refer to as the building plans. This tells flood insurance companies what the finished product is going to look like. These can tell you what the foundation type is going to be like. Is this going to be a lower risk with the site maps?
Recently we used a site map for a new construction home that took the flood insurance premiums from $3000 a year to $850.
That is a big difference, one reason is the property owner was able to adjust how high the foundation was going to be. Raising the foundation one foot lowered flood insurance premiums by more than $2000.
Is this the norm probably not but we see small changes like this impact flood insurance premiums every day.
Something else that can make a difference is an elevation certificate. This can tell flood companies like the National Flood Insurance Program how far above the base flood elevation the property is going to be.
So as you can see just a couple of things can have major impacts on flood insurance premiums for under-construction properties.
If you are ready to take the next step in getting builders' risk flood insurance premiums under control then do these 3 simple things.
2. Receive Customized Flood Insurance Proposals
3. Pick the Best Flood Insurance Plan