Henry D Young Inc Insurance Agency Blog

Flood insurance premiums are changing under new laws

Posted by Carol Reese on Thu, Feb 05, 2015 @ 12:02 PM

Congress recently passed the Flood Insurance Reform Act of 2012 (Biggert-Waters) and the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) which result in many important changes to the National Flood Insurance Program (NFIP). that will be effective on April 1, 2015 and will affect Flood Insurance premiums.

The NFIP defines special high-risk flood hazard areas as those with at least a 1 percent chance of annual flooding. Under Biggert-Waters, premium rates on many properties in these special flood hazard areas increased. Rates for nearly all buildings located in special flood hazard areas will be revised over time to reflect full flood risks. In addition, recent legislation phases out subsidies for some buildings in high-risk flood areas. As a result, rates for some older buildings will rise until they reach full-risk rates. In addition, all policyholders will be subject to new assessments and surcharges. 

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Topics: flood insurance, Smart Vent, foundation flood vents, tips to lower flood premium

Hurricane Sandy is coming - Should you evacuate?

Posted by Carol Reese on Sun, Oct 28, 2012 @ 10:10 AM

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Topics: flood insurance, homeowners insurance, hurricane preparedness, flood damage

Buying flood insurance will help you protect your home

Posted by Carol Reese on Mon, Jun 25, 2012 @ 14:06 PM

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Topics: flood insurance, salem county, homeowners, flood damage

Are You Prepared for Hurricane Season?

Posted by Carol Reese on Fri, Jun 01, 2012 @ 19:06 PM

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Topics: flood insurance, homeowners insurance, hurricane preparedness

Flood Insurance: What It's All About

Posted by Carol Reese on Thu, Mar 15, 2012 @ 09:03 AM

March 12-16th is Flood Safety Awareness Week.

Unfortunately, many people may not be aware that flood damage is not covered by homeowners insurance.

Many consumers are unaware that, even if their homes are ruined by a hurricane, they are not insured due to a lack of flood insurance. Insurance against flooding (rising water) is different from insurance against driven rain or leakage, which often are covered. 

Three perils—fire, lightning and windstorm—are traditionally covered by homeowners property insurance. Flooding is excluded from homeowners coverage, as floods tend to be catastrophic in nature causing widespread damage in a geographic area. Private insurers are not able to absorb all that risk.

Hurricanes get a lot of attention, but big storms are not the only cause of floods, nor are floods limited to coastlines. In fact, flooding is the nation’s most common and frequent natural disaster, according to federal officials.

Flood insurance first came about after the federal government was called upon to bail out communities. As the nation grew after World War II, flood-damaged communities turned to the federal government for disaster relief and rebuilding assistance. In the 1960s, Congress sought a more proactive system, and in 1968 created the National Flood Insurance Program (NFIP).

This community-based insurance mechanism requires municipalities to adopt and enforce flood-abatement measures. In order to join the NFIP, it must adopt a program of corrective and preventive measures for reducing future flood damage (including zoning and building requirements). Flood insurance is available only to consumers in communities that have joined the NFIP.

The National Flood Insurance Program (NFIP) is part of the Federal Emergency Management Agency (FEMA). It provides flood coverage to homeowners and renters as well as commercial building owners. Coverage is provided through Trusted Choice® insurance professionals, as well as through other insurance agents.

Flood insurance may not just be desirable for homeowners, it may be required. For example, mortgage lenders are legally bound to require consumers buying a house in a high-risk flood zone to have flood insurance.

Consumers who own or rent property in low- or moderate-risk flood areas can buy flood insurance, and may be eligible for a lower-cost preferred risk flood policy.

Flood insurance protects against losses to buildings and contents (not the property on which they sit). Coverage is in effect whether flooding results from heavy rains, storm surge on the coast, melting of snow, blocked storm drainage systems, levee or dam failure, or other causes. Waters must cover at least two acres or affect at least two properties to be considered a flood for insurance purposes.

Residential flood insurance provides as much as $250,000 of coverage for dwellings for one to four families, and as much as $100,000 for contents. Commercial property owners can get up to $500,000 of insurance for the building and the same amount for contents. Condominiums also can be insured.

Unlike homeowners insurance, flood insurance has a waiting period. The NFIP sets a standard 30-day waiting period before flood coverage goes into effect (except for lender-required flood insurance, if more insurance is required because of a flood map revision, or if existing coverage is being increased upon renewal).

Henry D Young Inc Insurance Agency is a Trusted Choice® insurance professional and can help you sort out whether you need coverage, what type to apply for, and what to get. 

Click here to obtain information about your flood risk and steps you can take to lessen the impact of flooding.

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The information in this article is meant as a guideline only. There is nothing in this article that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies' policies contain slight differences, please refer to your specific policy. Call our office before making any judgements or decisions concerning your particular situation and coverage that may, or may not, apply.


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Topics: independent insurance agency, trusted choice insurance agent, flood insurance, homeowners insurance

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