Flood Insurance questions
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Hi PW’ers (feels weird to say that – so used to the “FW’ers”)
I am in the market for a house and the area that I’m interested in purchasing is in flood zone AE, so I’ll need flood insurance. Having never dealt with flood insurance before, I wanted to ask those that have experience with flood insurance, a few questions:
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The realtor that I am using said that you “lock” into a rate for flood insurance once you get the policy, so the price wouldn’t increase for subsequent renewals years. Is that correct? My current premium for regular homeowners insurance increases, so surprised that flood insurance would lock in.
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Are there varied rates on policy premiums for flood insurance or is this somehow regulated? I read up on FEMA’s website, but rather confused at their explanation.
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The realtor also mentioned that I could get an elevation certificate which would certify the exact elevation and reduce insurance coverage. A question I had was, could this work against me if the house had less elevation than what the insurance companies had on file? In checking online, it didn’t seem like this would affect me negatively, but figured I’d ask.
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I realize that in addition to flood insurance, I’ll need homeowners insurance. Is there anything I can reduce on the homeowners insurance side coverage-wise that would be covered by flood insurance so I’m not overpaying?
Thanks in advance for the help!!
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I have my homeowners and flood thru State Farm. Although flood is written thru FEMA its administered thru State Farm. If you are buying in Florida you get a standard premium. If you are a winter visitor (aka snowbird) you pay a surcharge, The reason its important to have both thru the same insurance company is the claims adjusters will find a meeting of the minds of whats flood and whats homeowners. During Charlie I had two companys and they couldnt agree where flood stopped and homeowners started. Take a piece of 4x8 drywall and no one wants to pay for the 4 inches in the middle. I would lock in my rates and understand flood will increase next year regardless because of Floridas and Texas claims
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Thanks!! Yeah - it’s in St. Pete, FL and will be my primary residence. I can totally appreciate sticking with one insurance company because I was worried about the exact scenario you mentioned.
Question though - since it’s bundled with your regular homeowners policy, can you tell how much the flood portion goes up? The realtor mentioned that it’s “locked in” and doesn’t go up, but I can’t imagine that that’s the case.
Out of curiosity - how much has your policy gone up? I was quoted $2600 just for flood insurance (flood zone AE) but it’s a concern of mine that it’ll keep going up and up to the point of not being able to afford to hold on to the property.
Thanks!!
@amiami44 said in Flood Insurance questions:
I have my homeowners and flood thru State Farm. Although flood is written thru FEMA its administered thru State Farm. If you are buying in Florida you get a standard premium. If you are a winter visitor (aka snowbird) you pay a surcharge, The reason its important to have both thru the same insurance company is the claims adjusters will find a meeting of the minds of whats flood and whats homeowners. During Charlie I had two companys and they couldnt agree where flood stopped and homeowners started. Take a piece of 4x8 drywall and no one wants to pay for the 4 inches in the middle. I would lock in my rates and understand flood will increase next year regardless because of Floridas and Texas claims
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@jokerzwild said in Flood Insurance questions:
I was quoted $2600 just for flood insurance (flood zone AE) but it’s a concern of mine that it’ll keep going up and up to the point of not being able to afford to hold on to the property.
How much is the house worth? That seems like a lot unless it’s a million dollar property.
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That’s what I thought too… $317k. Price was listed on the package they supplied at the showing.
@atikovi said in Flood Insurance questions:
How much is the house worth? That seems like a lot unless it’s a million dollar property.