7 Common Questions About Flood Insurance
- Posted by Daniel Simcock
- On August 25, 2022
- fix and flip insurance, homeowners insurance
How is a flood zone determined?
Flood zones are primarily determined by the history of flooding in the area. An insurance agent uses a “flood map” to determine if a home is in an area that requires insurance.
How much flood insurance coverage is required?
The minimum amount of coverage required is the lesser of these amounts:
- Loan amount
- Rebuild Value – How much it would cost to rebuild your home
- National Flood Insurance Program – $250K Max
What is the required flood insurance deductible?
In general, the minimum deductible required is the lesser of these amounts:
- Fannie Mae/Freddie Mac – $10,000
- FHA – $10,000
- USDA/VA and RI Housing – $5,000
What are the loan requirements for FEMA and private flood insurance?
FEMA flood insurance is required for government-backed loans, such as FHA, VA, and USDA Loans. Private flood insurance is available to homes purchased with private loans.
What is a flood certificate and why do insurers need it to get a flood insurance quote?
A flood certificate documents how likely a property is to flood. It is one component used by your insurance agent to calculate your flood insurance premium. The higher the elevation, the less likely the property is to flood, which means lower insurance premiums.
What is the waiting period for flood insurance?
If coverage is for a ‘settlement’ on a new property purchase, flood coverage can be made effective on settlement date. Otherwise, the waiting period is usually 30 days.
Can flood insurance transfer from owner to owner?
A new buyer has the ability to transfer the current owner’s flood insurance policy to them.
This process is called “policy assumption” and can sometimes make the homebuying process easier for both the buyer and seller.
We hope we’ve helped you learn more about winter driving safety. And now we’d like to turn it over to you. Did you learn something new from this article? Or do have a question about your insurance policy? Leave a comment below or contact us at info@lapointeins.com.
