What will happen to my insurance premium when the new map officially takes effect? ![]() ![]() On the new map, my house will remain in the floodplain, but the zone designation will be changed to Zone VE. My house was built in Zone AE to the flood elevation in effect at the time of construction. The lower flood elevation may result in a lower premium. You should contact your insurance agent to ensure that the policy is re-rated when the new map officially takes effect. On the new map, my house will remain in the floodplain, but the elevation will decrease. My house was built to the flood elevation shown on the current map (or a previous map). ![]() If you do not have federal or federally related financing, you are not required by federal regulations to have flood insurance, although it is available to you. However, if you can show that your home has been continuously insured since before the map change, your premium will not be affected. If you cannot show that your house was built in compliance at the time of construction, your policy will be re-rated using the new flood map, which may raise your premium. If you can show that your house was built in compliance with local floodplain management regulations and the flood map in effect at the time of construction, the basis for rating your policy does not change, and your premium will be the same. On the new map, my house will remain in the floodplain, but the flood elevation will increase. Even if you are not required to purchase flood insurance, we encourage homeowners to continue coverage at the preferred risk rates, because you may be flooded by an event greater than the 1 percent annual chance event. You should have your policy re-rated using the new maps, which should lower your premium. If you wish to continue coverage once the new maps take effect, you may be eligible for preferred risk rates based on your property being outside the floodplain. If you have federal or federally related financing for the property in question, you will no longer have a federal requirement to purchase flood insurance when the new maps take effect however, lenders retain the prerogative to require flood insurance, even for property that is not in a floodplain. Will I have to continue carrying flood insurance when the new map officially takes effect? The new map, however, will show my house as being outside the floodplain. I have flood insurance, and my house is in a floodplain according to the current map. ![]() If you have insurance before the new map takes effect, the basis for rating that policy remains unchanged (i.e., you can use the rate that was charged to you when your property was located outside the floodplain). If you dispute the lender’s determination that your property is located in a floodplain, you and your lender can jointly request a Letter of Determination Review from the Federal Emergency Management Agency (FEMA) within 45 days of being informed by your lender that your property is located in a floodplain. If you do not purchase the insurance within 45 days after being informed that flood insurance is required, the lender can force place the insurance and charge you the cost of it. If you have federal or federally related financing for the property in question and you do not already have flood insurance, your lender may contact you once the new map takes effect and require that you purchase flood insurance. Will I have to purchase flood insurance when the new map officially takes effect? My house is not in a floodplain according to the current map, but the new map will show it as being in a floodplain. For newer buildings in floodplains, the elevation of the lowest floor relative to the elevation of the 1 percent annual chance flood can also be used to rate the policy. Major factors include the amount of coverage purchased the deductible and the location, age, occupancy and type of building to be insured. What factors determine flood insurance premiums?Ī number of factors determine premiums for National Flood Insurance Program (NFIP) insurance coverage.
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