Flood Insurance FAQs

Why Did My Lender Require Me to Get Flood Insurance?

The federal government implemented the National Flood Insurance Program to help protect property owners in the event of natural disasters like intensive storms or severe tidal conditions. They identified specific flood prone areas known as Special Flood Hazard Areas (SFHA) and mandate that homeowners in those areas have flood insurance.

How Do They Know My Property is in a SFHA?

The Federal Emergency Management Agency (FEMA) conducted extensive studies and developed Flood Insurance Rate Maps. The maps show the flood zones in two categories. Zone VE (ocean) and Zone AE (in land). Each Zone should have a Base Flood Elevation (BFE) associated with it.

What is a Base Flood Elevation?

It is how high water will rise in a base flood event.

What is a Base Flood?

It is a flood with a 1% chance of occurring in any given year.

How Is My Insurance Premium Rate Determined?

Flood insurance rates are based on how high your property is above the BFE. The higher your elevation and BFE, the lower your cost will be because you’re at a lower risk. The lower your elevation, the higher your cost will be because you’re at a higher risk.

I Don’t Think My Property is High Risk. Is There Anything I Can Do to Lower My Premium?

An FEMA Elevation Certificate (EC) should be prepared to determine the existing elevations in and around your dwelling as they compare to the designated BFE. Then, you should provide the EC to your insurance company to aid them in establishing your flood insurance rate. If the EC elevations show that your dwelling is entirely above the BFE, you can petition FEMA to remove your dwelling from the flood zone by preparing a Letter of Map Amendment (LOMA).

How Do I Get an Elevation Certificate and a Letter of Map Amendment?

Elevation Certificates and Letters of Map Amendment must be completed by a licensed land surveyor, engineer or architect.

Is an Elevation Certificate and Letter of Map Amendment Worth Doing?

Absolutely. By lowering or eliminating flood insurance premiums, you could save thousands of dollars during the time that you own your home. The savings can easily outweigh fees paid to a licensed professional.

If you have more questions, please feel free to contact us at (978) 777-3050.