This service empowers property owners to obtain coverage commensurate with the actual flood risk and allows those who service commercial and residential property portfolios to deliver focused business value and extraordinary client service.
AFSI performs a flood risk evaluation on all structures that require flood insurance. This process determines if any of the structures qualify for flood zone reclassification by FEMA and, if not, if the premiums can be reduced while maintaining the same coverage. AFSI shares the evaluation report with the client and, if requested, the client’s insurance broker or designated third party representative. The client can decide whether to move forward with flood zone reclassification or reduction in premium. The client should be paying for flood insurance only on those structures that are truly at high risk to flood during a 100-year storm. For buildings that do not qualify for flood zone reclassification, AFSI investigates whether or not the premium can reduced.
AFSI’s Flood Risk Evaluation (FRE) thoroughly examines:
- The exact location of the insured structure on the Flood Insurance Rate Map (FIRM). Our technical team performs a manual overlay to ensure 100% accuracy and to determine whether the subject structure is located in or out of the Special Flood Hazard Area (SFHA).
- The physical structure to determine if it was built in a flood safe manner.
- Changes or revisions, including updates, to the subject structure community flood map. In accordance with FEMA’s
scheduled release of new or revised maps, AFSI examines the potential impact upon the subject structure.
- Topography of the subject site to determine where water will pond or flow during a hundred year storm.
- The subject site’s proximity to dams, levees (dikes, flood banks) or floodgates. AFSI thoroughly investigates ownership, operation, age, accreditation, decertification, maintenance records and failures. While FEMA does not certify flood control structures, it does require that such structures be capable of holding back a 100-year flood.
- History of flood events – identify and evaluate flood sources.
- History of the structure. If the structure does not qualify for flood zone reclassification, there is a good chance that the structure may qualify for a reduction in flood insurance premium while maintaining the exact same coverage. Furthermore, refund eligibility ranges from one year and up to six years.
Upon completion of the FRE, the AFSI team submits the case to FEMA for review of the findings and correction of the flood zone designation if determined to be unwarranted. If AFSI finds that the property does not qualify, the client has an expert review and justification for the flood insurance requirement.
If FEMA agrees with AFSI’s evaluation and removes the building from the high-risk flood zone, FEMA will issue a Letter of Map Amendment (LOMA) or Letter of Map Revision (LOMR-F) to record the change to the flood zone classification.
Once FEMA issues a LOMA or LOMR-F, the federal flood insurance requirement imposed by the mortgage company is no longer required. AFSI, then proceeds, on the client’s behalf, to notify the mortgage company that FEMA removed the building from the SFHA and to request a written waiver of the mortgage company’s flood insurance requirement. Upon receipt of the mortgage company waiver and depending upon the property type and insurance program, the client is empowered to:
- Eliminate the flood insurance requirement or justify that the high-risk designation is correct
- Reduce the flood insurance premium
- Obtain appropriate flood coverage through the master policy at no cost (some restrictions apply)
- Receive a refund of the current year’s premium
- Improve net operating income
- Increase property values by capitalizing the new income
- Increase property marketability
Put the flood risk expertise of AFSI to work for you. Contact us to verify the accuracy of your flood zone designation, capture savings, protect and improve the value of your property.