Changes to the NFIP mean rising flood premiums for many property owners.
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If you are a property owner with a home or building in a high-risk flood zone and are required to carry flood insurance, don’t wait for the sticker shock of a renewal notice, now is the time to be proactive.  A property owner’s best weapons to combat rising flood premiums are education and a Flood Fairness Check, a thorough evaluation of a structure’s exposure to flooding.

Just knowing a property’s location on a map is not enough. This limited information leads many to minimize the importance of real estate value, mitigation measures, and allocation of insurance expenditures. The price property owners -residential and commercial, alike- pay for flood insurance relies on too broad a view of exposure to flooding versus the individual structural characteristics, which give an accurate assessment of flood risk. These features include a structure’s design, elevation, and flood proofing techniques.

No matter your location throughout the United States, if you are subject to lender-imposed coverage, you not only have a right to be concerned about rising flood premiums, but also a right to an accurate assessment of the property’s risk.

The following excerpts from a KGAN report further demonstrate why flood risk education is critical.

According to the Federal Emergency Management Agency (FEMA) “The discount premium structure in place did not allow the NIFP [sic] (National Flood Insurance Program) to generate sufficient revenue from policyholders to cover the losses experienced from hurricanes Katrina (2005) and Sandy (2012). As a result of the losses experienced in those events the NIFP now carries $24.6 billion in debt to the Department of Treasury.”

Huge losses prompted the program to change who it deems as high risk or non-preferred.

… “Effective this year you were seeing increases that go up to 18% per year for standard home flood policy and then for non-primary residences or businesses they’ll increase up to 25% each year and that will continue until the true risk rating is found,” says Graybill [Mitch Graybill, Personal Lines Supervisor at Millhiser Smith Agency].

Now as some NIFP regulations are set to expire even bigger changes are likely ahead.

Those will likely, as all changes do when it comes to insurance, will have a trickle-down effect that will drastically affect the consumer more than anything.

Source: Flood insurance rates on the rise | KGAN


AmeriFlood Solutions, Inc. provides flood risk education and three vital tools for property owners to obtain an expert and independent opinion on the actual flood risk of a home or building in a high-risk flood zone.  All tools, including the Flood Fairness Check for single-family homeowners, reveal if the flood policyholder pays too much, not enough, or should not be paying at all for the cost of coverage.

The Flood Fairness Check is a service from AmeriFlood Solutions, Inc. (AFSI) that determines if a property is a low-moderate risk versus a high risk (structures most vulnerable to flooding and rising flood premiums).

If your lender requires flood coverage, you have not filed a flood claim on the property, and the structure is not a mobile home, take advantage of the Flood Fairness Check. It includes a free evaluation and $350 reclassification fee if the property’s high-risk flood zone designation is wrong. The fee is contingent upon successful reclassification approved by FEMA. Learn more and submit your single-family home details for a Flood Fairness Check here.

Want to minimize the sticker shock of rising flood premiums? Don’t wait for a renewal notice, become proactive about flood risk today!





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