Sue’s Flood Real Estate Tips: Time to review your flood policy

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 written permission from their lender. In this situation it was very easy to get the lender to agree.