Tips for Picking the Proper Flood Insurance
Two inches of water can cause nearly $8,000 damage to the average home,
according to research conducted by the Federal Emergency Management
Not only is water-related damage one of the most common causes of an
insurance claim, thanks to recent flood-zone revisions by FEMA, millions
of homeowners are racing to find affordable flood insurance for the
Unfortunately, selecting the best flood insurance isn't always the easiest
Following is a checklist to use when speaking with an agent about purchasing
the right flood insurance protection for your property.
Many underwriters are restricted from writing a new flood policy once
a major event is announced, so shop for flood insurance ahead of time.
Find out when the flood policy is scheduled to go into effect, and ask
about purchasing a temporary policy during the interim.
Remember, flood insurance doesn't always cost a lot.
Homes in low to moderate risk areas may qualify for preferred risk policies.
Understand what type of flooding is included and what is excluded, as
well as which portion of the policy will cover the damage.
For example, high winds from a hurricane may result in water damage
to exposed areas of the home, earthquakes can cause pipes to burst and
even putting out a fire may result in extensive water damage.
Ask your agent what portions of the policy provide needed protection
in different scenarios, and evaluate the deductibles, limitations and
restrictions for each.
Review Your Risk
Updated flood maps have resulted in big changes.
and enter your zip code to get an up-to-date listing of flood risks
for your area
Flooding is the United States' #1 natural hazard.
We want consumers to know that while homeowner's insurance won't cover
them against flooding, they can protect their home and property by purchasing
a flood insurance policy separately through us--the flood insurance
Many people are under the misconception that they are ineligible for
flood insurance because of where they live, or their mortgage status.
But the truth is, as long as your hometown is an NFIP community, most
homeowners, business owners and renters can get flood insurance. We
urge consumers to remember the flood insurance basics:
You CAN get flood insurance nationwide.
- You CAN get flood insurance nationwide.
- You CAN get flood insurance if you live in a floodplain or high-flood-risk
- You CAN get flood insurance if you live outside a floodplain, or
a low-to-moderate flood-risk area - and at lower cost.
- You CAN get flood insurance if your property has been flooded before.
- You CAN get flood insurance from insurance agents in your area.
- You CAN get flood insurance even if your mortgage broker doesn't
NFIP- National Flood Insurance Program aka FEMA flood insurance
Program Changes as of January 1, 2013
NFIP previously announced average premium increases of 5% overall and
3% for Preferred Risk Policies as their annual premium change to the
flood program. Those premium changes were covered in FEMA
W-12027, summarized in Summer
FloodLines and will be implemented as of October 1, 2012. Therefore,
the premium increases below represent successive increases due to the
passage of the Biggert Waters Flood Reform Act.
NFIP Extends PRP Extension Eligibility Beyond the Initial
2 Year Period
While FEMA completes a study and analysis to develop an implementation
strategy for the Biggert-Waters Flood Insurance Reform Act of 2012,
policies written as Preferred Risk Policies under the 2 Year PRP Eligibility
Extension may continue to be renewed as PRPs beyond the previously designated
Under the initial 2-Year PRP Eligibility Extension, buildings newly
mapped into a Special Flood Hazard Area (SFHA) on or after October 1,
2008, became eligible for the PRP for 2 years beginning on January 1,
2011. Buildings newly mapped into an SFHA on or after January 1, 2011,
were also eligible for the PRP during the 2-year period following the
map revision date. At the end of the 2-year period, the policies were
required to be rewritten as standard-rated policies. For more information
please review FEMA
Bulletin W-10085 Aug. 23, 2010.
Beginning with the first renewal effective on or after January 1, 2013,
policies issued under the PRP Eligibility Extension that meet the PRP
loss history requirements will not be transitioned into standard X-zone
rating, but will continue to be issued as PRPs at each renewal until
further notice. Under the extension, new business PRPs may also continue
to be issued for properties newly mapped into the SFHA as a result of
a map revision that became effective on or after October 1, 2008.
NFIP Announces Jan. 1, 2013 Premium Increases for Preferred Risk Policies
Premiums will increase an average of 13% for PRPs written or renewed
on or after January 1, 2013. (The 3% increase as of October 1, 2012
and the average 10% increase as of Jan. 1, 2013 combined.) The combined
premium for a particular policy may change more or less than the average
13% total PRP premium change. The PRP premium tables that become effective
January 1, 2013, are included in the full FEMA bulletin linked below.
For more information and to view Jan. 1, 2013 PRP rate tables, please
refer to the entire FEMA
Bulletin W-12054 related to the January 1, 2013 changes.
NFIP Provides Premium Increase Rates for Non-Primary Residence Properties
Through the passage of HR 5740 authorizing the NFIP through July 31,
2012, the NFIP was directed for properties not the primary residence
of an individual to discontinue premium subsidies and to increase the
premium rates by 25% each year until the average risk premium rate equals
the average risk premium rates for actuarially-based properties beginning
on July 1, 2012.br>
Bulletin 12043 includes the premium rate tables to accomplish this
25% increase as of Jan. 1, 2013 and further information for your use.
Fidelity renewal billings for policies renewing Jan. 1, 2013 or later,
not indicated in our files as primary residence, and rated with subsidies
will contain the required 25% increase as well as a statement to inform
policyholders of the premium increase effective on that renewal billing.
The statement will read similar to the following:
On May 31, 2012, HR 5740 was signed into law amending the National Flood
Insurance Program. One provision of the new law states that residential
properties that are not the policy holder's primary residence are no
longer eligible to receive subsidized rates. Furthermore, the law requires
that rates for these risks must increase by 25% each year until it reaches
the appropriate actuarial rate level as determined by FEMA.
Flood insurance covers direct physical loss caused by "flood." In simple
terms, a flood is an excess of water on land that is normally dry. Here's
the official definition used by the National Flood Insurance Program.
A flood is (1) "A general and temporary condition of partial or complete
inundation of two or more acres of normally dry land area or of two
or more properties (at least one of which is your property) from a.
overflow of inland or tidal waters; b. unusual and rapid accumulation
or runoff of surface waters from any source; or c. mudflow*. (2) Collapse
or subsidence of land along the shore of a lake or similar body of water
as a result of erosion or undermining caused by waves or currents of
water exceeding anticipated cyclical levels that result in a flood as
defined in A.1.a. Above."
* Mudflow is defined (in part) as "A river of liquid and flowing mud
on the surfaces of normally dry land areas, as when earth is carried
by a current of water."
We offer a quick and easy quote for flood insurance.
Call us now about getting a flood insurance quote : 925-365-3200 or
fill out our EZ online insurance quote