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Let’s Talk About Flood Insurance

Think about this: just an inch of flooding can cost you $25,000 or more. We don’t want our clients to be at risk of such a huge loss so we want to share when it’s needed, how much it costs, and more! Do you feel confident with your current flood insurance? Do you need flood insurance? Keep reading to learn more.

Let’s start with a common question we get from clients. “I’m not in a floodplain, but I would like insurance to cover me against my home flooding. Is that possible?” Absolutely and good for you for taking that extra step. Federal Emergency Management Agency (FEMA) says that 25% of their flood claims are by people not located in a floodplain. If that statistic doesn’t inspire you to jump on it, consider this next fun fact – flood insurance premiums are based on the risk level that your property will flood, if you’re not in a floodplain your premium could be pretty inexpensive! 

Now, let’s say you decided against flood insurance when you bought your home because it wasn’t required at the time. Why is it required now? The answer is because flood maps change. FEMA will change the map based on changes in the environment. Based on where the floodplain is and how your house is sitting compared to it, you may still be able to opt out. 

So how do you know if you need flood insurance? The National Flood Insurance Program has drawn up flood maps based on elevations and scientific data about where flooding is likely to occur.  If your property is determined to be in a floodplain then you may need flood insurance.  The reason we say “may need” instead of “absolutely”  is because sometimes only part of the property is sitting in the floodplain. These are when “Flood Elevation Certificates” are put to use.  These certificates show the elevation of the floodplain and the elevation of the lowest point of your structure. If this document shows that your property is above the flood elevation, then you are on your way to getting the map changed. This will remove the requirements for you to have flood insurance! The last step you would need to take in this process is filing for a Letter of Map Adjustment (LOMA). This can be done online with the info from your Flood Elevation Certificate. 

Bottom Line

Flood insurance provides funding to repair flood-damaged property without the need to draw down savings, take on debt, or rely on often insufficient and delayed assistance from the federal government. We hope this blog helped clear up any flooding questions you may have. We know how crucial this topic is for homeowners so please reach out to Weber Mortgage for additional information and support. 

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