September 28, 2016
Within the past year FEMA has begun a new flood insurance program for those whose homes have been moved from a low risk flood zone to a high risk flood zone. This program is called the Newly Mapped Flood Program. A significant percentage of residents of Corte Madera, Larkspur, San Rafael, Mill Valley, and other incorporated and unincorporated areas of Marin County have been affected.
What I have been finding is that many people that could qualify for this program are not being offered this program by their insurance agent. Why this is the case I can only guess.
If you recently have been forced to buy flood insurance and were not required to purchase it several years ago, you may qualify for this program. Discovering if you quality for this program could not be more simple. This does seem like a good reason to consider a “second opinion.” I have several clients that were not offered the Newly Mapped program by another agent and we were able to successfully get them into the program. Some of them have saved over $1,000 per year on flood insurance.
Send us an email with the following information:
Address of Home
Do you currently have flood insurance and kept it in force since required?
From there we will run your address through a program to determine possible eligibility. If it appears that you qualify, then we will proceed to the Quote and Application Stage. Further and Final Underwriting is always required.
According to FEMA and Floodsmart: “For the first year following a map change, you can obtain a flood insurance policy at a rate equal to the lower-cost Preferred Risk Policy (PRP) rate, though a higher Reserve Fund Assessment and Federal Policy Fee will apply. After the first year, the rate begins transitioning to a full-risk rate, with annual rate increases of no more than 18 percent.” The FEMA site continues with more helpful information: “If you do not have flood insurance and find that your building will be mapped into an SFHA, we encourage you to purchase a PRP policy before the new maps become effective. You will be covered for your actual flood risk and will be able to renew your policy at the lower-cost PRP rate for another year during the first 12 months after the new map becomes effective.”
Not all properties will qualify for the Newly Mapped Flood Program if in the past they “…filed claims.” However these properties may still qualify for the “grandfather rating option.”
Basically properties that have been moved into a high risk flood zone recently. These homes have a limited time to get into this program. There are restrictions as to past claims.
The newly mapped program it seems is not intended to be a forever program. It will likely not keep your rates below market indefinitely however it MAY be able to keep it lower for a few years. According to FEMA: ” After the introductory year, the rate will begin its transition to a full-risk rate with annual rate increases of no more than 18 percent each year.” Clients may be alarmed at rate increases of 18 percent per year, however one needs to keep in mind that the rates that I am seeing are so far below ‘market rate’ that even with those yearly increases maxed out it could take 5 or more years to come up to the standard level.
More information from FEMA can be found here: The Newly Mapped Procedure Factsheet.
You can read lots more information about Flood Insurance on a previous post of mine: All About Flood Insurance.
Marindependent is a fully independent Boutique Insurance Agency. Marindependent is proud to be a Green Marin Business. We sell lots of forms of insurances, including Federal and Private Flood Insurance. Please read our disclosures and know that reading about insurance online is not a suitable replacement for speaking with a licensed insurance agent in your jurisdiction. Thank you for reading about the Newly Mapped Flood Program.