Did you know that 30% of flood insurance claims come from properties in low to moderate risk zones?
Floods are the #1 natural disaster in the United States, and the fact is, everyone lives in a flood zone - it's only a matter of whether it is a low, moderate or high risk zone. Many people mistakenly believe that flooding is limited to coastal areas. In fact, some of the most damaging flooding has occurred well inland. In 2004, Pennsylvania, which has no ocean coastline, received more than $175 million in flood insurance payments - second only to Florida.
Who is Required to Purchase Flood Insurance?
If you are buying or own a home or commercial property in a designated high-risk flood zone and receive a mortgage loan from a federally regulated or insured lender, your lender is legally bound to require you to get and maintain flood insurance. Some mortgage lenders offer their own flood insurance, however it is typically more expensive than what is available from the National Flood Insurance Program. If the property is not in a high-risk area, but is in a low-to-moderate risk area instead, the law does not require flood insurance. However, flood insurance is still available and you may be eligible for a low-cost Preferred Risk Policy.
The definition of a flood, according to FEMA and the National Flood Insurance Program is as follows:
The Federal Emergency Management Agency and the New Flood Maps
FEMA has undertaken a Map Modernization project, which is a $1 billion national initiative mandated by Congress to provide new, highly accurate flood maps in a digitized format for 92 percent of the country. Our area has been directly affected by this project. Residents need to be aware that although they may have previously been in a low risk zone, the status of that zone may now have changed to a high risk zone. FEMA is encouraging residents to take advantage of the National Flood Insurance Program's "grandfather rules". In brief, the way grandfathering works is if your property has been newly designated into a high risk zone you may purchase flood insurance with the premium based on your previous low risk zone, as long as you do so before the new maps take effect. For details on FEMA's grandfathering rules and your eligibility please refer to the following news release from FEMA: https://www.fema.gov/news/newsrelease.fema?id=42385
To learn more about flood insurance here is a link you may find useful:
Important Note - The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any policies. You should read the policy for a complete description of coverage. Coverage options, limits, discounts and deductibles are subject to availability and to individuals meeting underwriting criteria. Not all features available in all areas.