Before the start of 2018, many predicted political and economic uncertainty.  This proved to be true of the National Flood Insurance Program and the flood insurance market.  In total, 2018 brought three program lapses lasting over eight days with seven short term extensions and a series of Federal Emergency Management Agency leadership and administrative changes.  Predictions for 2019 bring with it additional uncertainty.  With a new Congress, the introduction of a new rating system, and lending regulatory changes, 2019 could extend 2018’s flood insurance-related ebbs and flows. When the new Congress started in 2017, House Financial Services leadership announced that flood insurance reform would be a priority.  At that time, the flood program was set to expire on September 30 of that year.  Early on, several controversial reform bills were introduced that stalled in Congress.  After the 2017 hurricane season hit, Congress changed focus, leading to short term extensions of the flood program.  In 2018, the short term extensions became more volatile leading to program lapses and week-long extensions.  In 2019, there may be more short-term extensions, but there is also hope for true reform.  Late last year, Congress voted on a standalone bill to extend the flood program to […]

As we enter 2019, its time to review your annual flood insurance policy.  Review the policy coverage with your current insurer and question the deductible amount. Then it’s time to get a second opinion!  I recently listed a home in an AE flood zone. The homeowner was paying $3,600 for an annual policy with a $2,000 deductible. This premium was high compared to homes in the immediate area. The property owner had not filed a flood damage claim in over 40yrs.  After speaking with the insurer it was determined the property qualified for a deductible increase to the maximum amount of $10,000* (the maximum allowed for a 1-4 family building). This change reduced the annual flood policy to $2,200.   Then the homeowner got a second opinion from an agency with flood insurance expertise; Murphy Carty Insurance. The original insurer was incorrectly designating the crawlspace as a basement, this significantly increased the annual cost of the policy.  For the exact same FEMA coverage, they wrote the annual policy for $1,800! We all tend to pay our annual policies without reviewing or questioning them. This scenario will not always be the outcome but it is well worth exploring. You can ask to review your flood policy at any time, you do not have to wait until renewal.  *Please note the homeowner had a mortgage on the property. In order to increase the deductible amount, they needed to obtain […]