Flood Insurance Help

By Bill Black // No Comments » // flood, flood insurance, insurance

    Mandatory Coverage

  1. Federal law requires homeowners in NFIP communities with a federally backed mortgage to carry flood insurance if their home lies within a high- or coastal high-risk flood zone. The Federal Emergency Management Agency (FEMA) conducts flood hazard analysis–a detailed hydrological analysis–to determine which areas in the United States experience the greatest chance of flooding. Areas requiring flood insurance experience a 1 percent chance of flooding annually and a 26 percent chance during the life of a 30-year mortgage.

    2. Optional Coverage

  2. Homeowners and renters in low and moderate risk zones have the option of purchasing flood insurance. These homes lie between the 100- and 500-year floodplains or outside them. Many homes in these areas qualify for preferred policy rates.

    3. Map Amendments

  3. Some properties may appear to reside in a high-risk area on a flood map when they actually lie just outside the area or upon higher ground than surrounding properties. FEMA offers the Letter of Map Amendment (LOMA) process to address these situations, whether occurring naturally or through the introduction of fill during the construction process. An engineer or architect must complete the LOMA application for the homeowner, including with it the FEMA flood elevation certificate. If FEMA approves the application, the federal requirement for flood insurance is waived; however, the mortgage lender may still require it.

    4. Flood Proofing

  4. Flood proofing your home can lower your insurance premiums while enhancing your safety and reducing potential damage. Some common techniques include adding a waterproof veneer to outside walls and raising heating and air conditioning units. FEMA provides free information on flood proofing in its publication, “Protect Your Property from Flooding,” available as a download.

    5. Premium Estimates

  5. NFIP provides a free online tool that determines your property’s flood risk and the zone it resides within, as well as premium estimates for various levels of coverage and contact information for local insurance agents. To use the tool, you will need to enter the street address, city, state and zip code of the property and the type of property it is–residential or commercial.

    6. Filing Your Claim

  6. If your home is damaged by a flood, the CNN Money website explains that you should contact your insurance company immediately with a description of the damage. The company will assign an adjuster to examine the damage. Before meeting with the adjuster, you should photograph all the damage and document it in writing. Make an inventory of damaged or lost items. Provide copies of this information to the adjuster.

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