In today's episode, we want to cater to all property owners who are looking to get flood insurance through federal means and also share all about what you need to have in that National Flood Insurance Program (NFIP) application to make sure it is valid for your bank or mortgage lender to accept it.
DISCLAIMER — the National Flood Insurance Program (NFIP) through the Federal Emergency Management Agency (FEMA) will be getting a huge overhaul and update through the new Risk Rating 2.0 program. It's important to keep in mind that these requirements and applications might change once the new program arrives on October 1, 2021.
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What are the things that you need to have on that application to make sure it's valid?
Insured Name
First and foremost, you want to make sure that you have the insured name. Generally, the name you would put there is the name of the owner of the house or home if it's a residential property or the owner of the business for commercial properties.
If you're an agent, you don't want your name to be included there since it would invalidate the application since your name won't be written with the property details itself. It's important to note that agents can be the bridge between the homeowner and FEMA, but all of the details especially the insured name should be for the policyholder, homeowner, or business owner only.
It shouldn't be said, but make sure that the spelling, name extensions, and things like that are accurate since it can be very confusing.
Property Address
What might be the most important thing is the property address. You see, right now FEMA and NFIP will use the property address to determine a lot of things for flood insurance. Getting the correct address to FEMA and NFIP on your application and bank will help determine things like what flood zone it's in, the flood risk, and the outcome of the flood insurance premium.
Since property addresses are also looked into personally, but most likely digitally by FEMA and the NFIP, you want to make sure that you have the property address details 100% clear and concise. One wrong number or maybe you wrote the wrong street can mean that your application will be rejected. If it's approved then it's not for your property.
Total Premium
One thing you need to remember about is that flood insurance is paid upfront, so you will be asked to provide the total premium which also means that FEMA and NFIP are most likely to ask for your copy of the receipt of the premium. This may also involve things like the deductible amount, Increased Cost of Compliance (ICC), Community Rating System (CRS) if you're eligible, and rating type.
Signatures
Lastly, you want to make sure that you sign this document or you have the homeowner sign the document for the application if you're the agent.
When it comes to the signature, this is like saying on paper that you approve the application for the NFIP policy. As a homeowner, this means that you are aware of the things that can go into NFIP policies, applications, and flood insurance itself. You completely acknowledge that you accept the terms and conditions included as well.
For agents, you are also needed to sign the document as a form of affirmation and completion. This means that you are aware that the homeowner is willing to accept the NFIP application and flood insurance policy. You are also showing that you had a hand in making sure that they're protected through FEMA and NFIP.
Simply put, both agent and insured are expected to have signed the document or NFIP application. Without these signatures, the application — regardless if you've completed the first three — will be invalid.
If you have any questions on how to apply for flood insurance through FEMA and the NFIP, what your flood risks are, or anything about flood, click below:
Remember, we have an educational background in flood mitigation which lets us help you understand flood risks, your flood insurance, and mitigating your property long term.