Do you understand when you purchase a home in a flood zone that the history of damage and claims follows along with the property from one owner to the next?”
Flood claims are specific to the property itself, not the owner. Why is this so important? Once 4 substantial claims have been placed on a property the new designation for the home will be classified as a “Severe Repetitive Loss” structure. This designation will significantly increase the cost of your flood insurance premium with the NFIP and exclude many private flood options.
Once the property is put into this category there are ways to reduce your premium through flood mitigation measures. Please refer to our website for the many ways to significantly reduce your flood insurance premiums with mitigation
The way to receive the most significant relief is to elevate the structure. Elevating to the minimum requirement, base flood elevation plus one foot, protects you against most major flooding events. Elevating at least three feet beyond the Base Flood Elevation protects against even more and increasingly significant events. Elevating four feet gives the largest insurance discount.
One of my clients in Scituate followed this exact measure. The property was elevated to three feet beyond the required base flood elevation for a significant savings on the annual flood insurance premium. The reduction was enormous and immediate once the structure was elevated.
However, the FEMA flood insurance designation as “Severe Repetitive Loss” was not removed from the property history. This is critical to receive maximum savings on your flood insurance premium. The properties new designation as FEMA compliant affords you cost savings but a brand-new history regarding claims will reduce your premiums that much further. Removing the “Severe Repetitive Loss” designation begins the clock again for the property. Think of it this way, you want the full reward for your compliance. FEMA needs to reward you for following their guidelines. You have protected your property according to their recommendations from future potential flood damage.
My recommendation is to make certain you are working with an agency with flood insurance expertise, such as Tim Carty at Murphy Carty Insurance. Don’t be afraid to get a second opinion.
