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NATIONAL FLOOD INSURANCE EXPIRES
March 7th, 2017 6:55 AM

NATIONAL FLOOD INSURANCE EXPIRES

Barbara’s Blog:

The National Flood Insurance Program is set to expire in September, 2017.  Under this program, homes and businesses in high-risk areas, such as waterfront or low-lying communities near creeks or small bodies of water, are required to have flood insurance to receive a mortgage loan from federally regulated or insured lenders.

Here are some key points that buyers or homeowners need to know about flood insurance:

  • Buyers may purchase flood insurance only through an insurance agent, not directly from the National Flood Insurance Program (NFIP).
  • Rates do not differ from company to company or agent to agent.
  • Rates depend on several factors, including whether the building is residential or commercial, when it was constructed and the elevation of the property as compared to the base flood elevation.
  • A property’s location on the NFIP flood map may determine whether a lender requires coverage.
  • Buyers may purchase a policy, regardless of where their home is, since flood damage can occur in moderate-and low-risk zones.
  • The contents of a home are not typically covered by flood insurance.
  • In most cases, there is a 30-day waiting period from the date of purchase until the policy goes into effect.
  • In some instances, a buyer will be able to assume the sellers’ flood insurance policy.

With the NFIP due to expire this fall, real estate professionals, lenders, builders and developers will be paying attention to Congress in the coming months.  This is a national problem,  but Florida is leading the way because of the impact on the state.  The goal is to ensure that the NFIP remains a viable option for homeowners and also to clear a path for a private flood insurance market to take hold.  For those homeowners with no mortgage, it is a good idea to check and see whether or not their property is considered in a flood zone or not, especially with hurricane season just around the corner.

Written by Barbara Doeringer

 

 

 


Posted in:Real Estate
Posted by Allen Doeringer on March 7th, 2017 6:55 AMPost a Comment

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