Nov. 11 Understanding Flood Zoning and manage your flood insurance expense

In 1968, Congress created the National Insurance Program (NFIP). Since most homeowners’ insurance policies did not cover flood, property owners who experienced a flood often found themselves financially devastated and unable to rebuild. The NFIP was formed to fill that gap and was designed to incorporate community adoption of minimum standards for new construction and development to minimize future risk of flood damages. Owners of many of these older properties were eligible to obtain insurance at lower, subsidized rates that did not reflect the property’s true flood risk.

In addition, as he initial flood risk identified by the NFIP has been updated, many homes and businesses that had been built in compliance with existing standards have received discounted rates in areas where the risk of flood was revised. This “Granfathering” approach prevented rate increase for existing properties when the flood risk in their area increased.

After 45 years, flood risks continue and the costs and consequences of flooding are increasing dramatically. In 2012, Congress passed legislation to make the NFIP more sustainable and financially sound over the long term.

The Act phases-out grandfathered rates and moves to risk-based rates for most properties when the community adopts a new Flood Insurance Rate Map. The insurance rate will increase to reflect the true risk.

One of the things you may want to do is to obtain an Elevation Certificate to determine your correct rate and manage your insurance premium expense.

Mr.  Keith Nofield, Land Surveyor, will give us a talk about flood zoning and Elevation Certificate.