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rbgarr
11-03-2006, 10:13 PM
I was reviewing insurance matters with my agent to day and was amazed by something that makes no sense to me. I had asked him to look into what national flood insurance would cost for our house here (it's not required but I was curious to know). When we lived in Georgia, not more than 100 yards from the edge of an exposed-to-the-ocean salt marsh, with a first floor at 14 feet above high water our national flood insurance was about $675 per year. Our house here in Maine is 30 feet above high water in a much more protected area, yet the flood insurance quote is $2400 per year. The houses are approximately the same value and I bet that rising water in Georgia would do substantially greater damage there than here.

Is this premium difference the result of recent hurricane and flood damage claims in the recent past? I understand that homeowners premiums especially for shoreside property have risen, but has anyone else seen these changes in national flood insurance premiums? Donn, you live on the water....

High C
11-03-2006, 10:29 PM
...has anyone else seen these changes in national flood insurance premiums?....

I had a bit of a flood last August, and my premiums didn't go up at all. Homeowners will likely go up some 10 to 20%, but flood is expected to rise less.

The quote you got is strange. I can't imagine???

Ron Joslin
11-03-2006, 11:31 PM
The condo we got in Florida is in the 100 year flood zone area and the only flood insurance we can get on the building is from the state. It has gone way up but I am not shure on the exact amount. Before hurricane Francis we had no Homeowners ins. After the rebuild it was hard to find a company who would give Homeowners for a condo in the flood zone , on the water , ground floor.

JimM
11-04-2006, 12:00 AM
FEMA develops flood plain maps that are used to determine your flood plane insurence rate. Your flood risk may be caused by preditions where flood water will flow from a upland source rather than from stream, lake or bay. Think about areas like parking lots, road dranage and lots of home roofs. They can also have made very big mistakes in their flood plane determination. Go to your citty or county planing department and check out the flood plane map. It may explain your rate.

rbgarr
11-04-2006, 03:22 AM
Good points, Jim.

Gary E
11-04-2006, 08:14 AM
For the first time ever, the apt where I live has required us to have renters insur.
I got the insur over the phone from the insur co that covers my car, but they sent me an application to fill out and return.

The FIRST BOX at the top of the PAGE 1 is ...
Distance From Ocean, Intercoastal Waterway, or Saltwater Bay, Sound or Inlet.... he marked it >5 miles

This makes me wonder if anything closer than 5 miles would even be considered for coverage. Also make me wonder if I should scrap that dream I have had to live closer to the water.

uncas
11-04-2006, 08:49 AM
It might have to do with the possibility that second homes are more expensive... And empty a lot of the time. A primary residence may be cheaper for that reason.

RichKrough
11-04-2006, 09:01 AM
I just dealt with this as we are getting close to starting our new house in Wilmington NC.
Important cost factors include the level of participation by your local government in FEMA emergency management programs and your town's incorporation of FEMA recommendations into the local building code.

http://www.floodsmart.gov
http://www.floodsmart.gov/floodsmart/pages/premiumest.jsp

Ron Joslin
11-04-2006, 09:29 AM
It might have to do with the possibility that second homes are more expensive... And empty a lot of the time. A primary residence may be cheaper for that reason.

This may be so for a single family house but in our condominium association it is not so. Our Building has 24 units and is on the ICW in Florida and for us it is our second home but for others it is their primary residence and we share the Flood Insurance equally. In Oct of 2005 the insurance laws for condos in florida where changed resulting in more responsibillity to the unit owners causing us to get Homeowners coverage. I am shure that the insurance laws are different for condos than for single family one owner houses.

JTA
11-04-2006, 10:59 AM
I am extremly suprised at the cost of your flood insurance. Second home or not, the MAX the federal flood insurance program will pay is $250K for the structure and an additional $100K for contents.
Like High C we had a little flooding problem last August, we now have flood insurance and it is less than the first figure you mentioned, no where near the second.

Since it is a federal program can it really vary from state to state that much?

Jack

Bruce Hooke
11-04-2006, 11:10 AM
For the first time ever, the apt where I live has required us to have renters insur.
I got the insur over the phone from the insur co that covers my car, but they sent me an application to fill out and return.

The FIRST BOX at the top of the PAGE 1 is ...
Distance From Ocean, Intercoastal Waterway, or Saltwater Bay, Sound or Inlet.... he marked it >5 miles

This makes me wonder if anything closer than 5 miles would even be considered for coverage.

It is possible this is simply their way of figuring out which policies need a closer look to determine if they might be in a flood zone, except that then you would think they would include rivers into the mix. I think it is more likely that they are thinking not specifically of floods but rather of the fact that coastal environments are windier and so more risky, and so probably call for a higher insurance rate.

Seems to me a good starting point regarding the decision about where to live is an intelligent look at the risks. Living on, say, a barrier island, is just plain stupid in my opinion. Similarly, living on low, flat land near salt water is taking a big risk too. Expect to pay higher insurance in those types of places, and with good reason. On the other hand, I live less than 3 miles from salt water and I've had tenants insurance for years and my proximity to salt water has never been an issue. My house is about 85 feet above sea level.

RichKrough
11-04-2006, 11:41 AM
..........Since it is a federal program can it really vary from state to state that much?

Jack

http://www.floodsmart.gov/floodsmart/pages/crs_ratings.jsp

JTA
11-04-2006, 01:16 PM
A survey was performed on the above referenced property located at
XXXXXXX on 20 DEC 2005 by xxxx L.S. No. xxxxx. This survey established thefollowing elevations
(see Attached FEMA Elevation Certificate, Section C)
C3 a) Top of bottom floor 14.0 ft.
b) Top of next higher floor 14.3 ft.
d) Attached garage 13.7 ft.
e) Lowest elevation of machinery and/or equipment servicing the
building 14.0ft
f) Lowest adjacent grade 13.4 ft.

These elevations are based on Mean Sea Level NAD 1983. The 100 year
Base Flood Elevation for said property according the Flood Insurance
Rate Map, panel number XXXXXX dated 9-18-87 is 10.0 (MSL).
Therefore no structure on this property is less than 3.7 feet above
the Base Flood Elevation.

jack grebe
11-04-2006, 04:17 PM
I was reviewing insurance matters with my agent to day and was amazed by something that makes no sense to me. I had asked him to look into what national flood insurance would cost for our house here (it's not required but I was curious to know). When we lived in Georgia, not more than 100 yards from the edge of an exposed-to-the-ocean salt marsh, with a first floor at 14 feet above high water our national flood insurance was about $675 per year. Our house here in Maine is 30 feet above high water in a much more protected area, yet the flood insurance quote is $2400 per year. The houses are approximately the same value and I bet that rising water in Georgia would do substantially greater damage there than here.

Is this premium difference the result of recent hurricane and flood damage claims in the recent past? I understand that homeowners premiums especially for shoreside property have risen, but has anyone else seen these changes in national flood insurance premiums? Donn, you live on the water....
something doen't seem right