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How New Flood Hazard Maps Affect Insurance
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Did You Know...
- There are over 40,000 flood insurance policies in force in Hillsborough County providing $8.5 million in property coverage?
- That because it has adopted more stringent flood mitigation measures, Hillsborough County has received a Class 6 (out of 10) rating in FEMA’s Community Rating
System (CRS); and that there are only 37 other communities, out of the 21,000+ in the US, that have a better rating?
- Hillsborough County residents enjoy a 20% discount on their flood insurance policies each year because of its excellent CRS 6 rating?
- The Class 6 CRS rating saves the average property owner close to $100 per flood insurance policy each year in high risk areas?
- The Class 6 CRS rating saves the community more than $3 million in flood insurance premiums per year?
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Flood Insurance
Flood insurance is an important first step in protecting your financial investment. Over the life of a 30-year loan, a home in a high-risk area (known as a Special Flood
Hazard Area) has about a 3 times greater chance of having a flood than having a fire. In accordance with the Flood Disaster Protection Act of 1973 and the National Flood Insurance
Reform Act of 1994, flood insurance is required for all structures located in a high-risk area, that carry a home mortgage loan backed by a federally-regulated lender or servicer.
The risk can vary dramatically from neighborhood to neighborhood and within a neighborhood. Remember, flood insurance is available for all properties, regardless of risk designation,
and that homeowners insurance does not typically protect you from flood damage. Learn more by visiting the National
Flood Insurance Program consumer website.
Flood Insurance Requirements and Options
With the new maps, some property owners' flood insurance requirements have changed. However, options exist that will allow property owners to save money while still protecting their property.
| IF MAPS SHOW… |
THESE REQUIREMENTS, OPTIONS AND SAVINGS APPLY |
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Change from low or moderate flood risk to high risk
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Flood insurance is mandatory. Flood insurance is federally required for most mortgage holders. Insurance costs will rise to reflect the true (high) risk.
Grandfathering offers savings.
The National Flood Insurance Program (NFIP) has
"grandfathering" rules to recognize policyholders who
have built in compliance with the flood map or maintained
continuous coverage in the NFIP. Your insurance agent can
provide more details on how to save.
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Change from high flood risk to low or moderate risk
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Flood insurance is optional, but
recommended. The risk has only been reduced,
not removed.
Flood insurance can still be obtained, at lower rates.
Twenty-25 percent of all flood insurance claims come from low
to moderate risk areas.
Conversion offers savings. An
existing policy can be converted to a lower-cost Preferred Risk
Policy.
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| No change in risk level |
No change in insurance rates.
Residents can talk to their insurance agent to learn their
specific risk and take steps to protect their property and
assets.
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Benefits and Further Information About the National Flood Insurance
Program:
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Most Homeowner's insurance does not cover flood damage.
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There typically is a 30-day wait after the purchase of a flood
insurance policy before it becomes effective.
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Properties located in low- or moderate- risk flood zones ( marked
B, C, X or shaded X on the flood maps ) can and still do flood; but property
owners may be eligible to purchase a flood insurance policy, a
Preferred Risk Policy, at reduced premiums.
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Historically, 20-25% of all flood claims paid out are on
properties located outside of high risk areas, known as Special
Flood Hazard Areas ( SFHAs ).
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The higher up a property owner raises their structure above the
base flood elevation in high risk areas ( to a certain limit ), the
lower their insurance premiums will be. A property owner in a high
risk area could save as much as 50% in premium payments by
building just 2-3 feet above the base flood elevation.
Where to Go For Further Information on Insurance
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