New Flood Insurance Designations
Posted Aug 29, 2007 @ 1:39 pm, Viewed by 540 Visitors, Read 555 Times.
After the disaster in New Orleans 2 years ago FEMA rewrote the flood maps for the entire country. Some houses that were in a flood zone x are finding out they now have a new flood insurance designation. This can pose a problem for houses that have living area built right on the ground.
These houses may have been built following all of the rules and regulations but now that the rules have changed new flood insurance policies are required. The owners of these houses might not have a flood insurance policy because they were not required to at the time they purchased the property. They are grandfathered in under the old rules. This does not mean that you will not have to have a flood insurance policy. New purchases require you to follow the new rules.
The owners of these houses might have a flood policy with low premiums because they are using the grandfathered guidelines. When you purchase one of these houses you will not be able to use the grandfathered guidelines. You will have to get a new flood insurance policy with new rates that will probably much higher.
It is more important now than it ever was to make sure you have an experienced agent to help you with your purchase of real estate on the Outer Banks. Last minute lessons on flood insurance regulations can be costly not only in terms of flood insurance premiums but in the actual value of the property itself.
A house that has an expensive flood insurance premium has less value than the exact same house that does not have the expensive flood insurance premium. The only difference might be 6 inches in elevation or the next lot over.
These houses may have been built following all of the rules and regulations but now that the rules have changed new flood insurance policies are required. The owners of these houses might not have a flood insurance policy because they were not required to at the time they purchased the property. They are grandfathered in under the old rules. This does not mean that you will not have to have a flood insurance policy. New purchases require you to follow the new rules.
The owners of these houses might have a flood policy with low premiums because they are using the grandfathered guidelines. When you purchase one of these houses you will not be able to use the grandfathered guidelines. You will have to get a new flood insurance policy with new rates that will probably much higher.
It is more important now than it ever was to make sure you have an experienced agent to help you with your purchase of real estate on the Outer Banks. Last minute lessons on flood insurance regulations can be costly not only in terms of flood insurance premiums but in the actual value of the property itself.
A house that has an expensive flood insurance premium has less value than the exact same house that does not have the expensive flood insurance premium. The only difference might be 6 inches in elevation or the next lot over.
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I hope it's not too technical.
Posted 2 years ago
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That's a very good point. FEMA just finished doing a review here in Louisville. With our proximity to the Ohio River...same issues. good post! Eric