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Flood Insurance Will The Changes Effect You?

flood1On July 16, 2012, changes were made to The National Flood Insurance Program (NFIP) that required the Federal Emergency Management Agency (FEMA) to remove subsidies on flood policies, which resulted in rate increases for thousands of homeowners who were required to carry flood insurance.


Luckily for those homeowners, the rate increases were not implemented thanks to the H.R. 3370 bill passed by Congress, known as the Homeowner Flood Insurance Affordability Act of 2014. This bill delayed the implementation of the rate increases of flood premiums for four years.


If you are a homeowner fortunate enough to live in a “Preferred Flood Zone,” flood insurance is not required, so do not worry. However, purchasing flood insurance is something you should still consider because every home has the potential of experiencing a flood and that flood resulting in damage.


Others, however, are not so fortunate, and flood insurance is required. Flood premiums must be paid in full at the renewal of each policy.


If you are required to carry flood insurance, remember that to get the best rate, an Elevation Certificate is recommended. This certificate allows the NFIP to provide you with the most accurate rate. Failure to secure an elevation certificate could result in the highest premium, as premiums must be manually rated.


Flood insurance serves many purposes. Most don’t know that flood insurance covers more than just water damage due to a flood. Coverage goes beyond water damage but includes hurricanes, tornadoes, flooding, droughts, ice storms, earthquakes, wildfires, and tropical storms. Any of these perils could occur as Mother Nature is unpredictable.


If you are wondering whether or not you should purchase flood insurance or have questions about your existing flood policy, do not hesitate to call your agent.

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