When new flood maps are proposed, there is usually a period of at least six months from the time the proposed maps are made available to the public and the date when they go into effect. You and your insurance agent can use this time to decide what strategy will result in the lowest rates for the same amount or even an increased amount of coverage.
What factors determine flood insurance premiums?
A number of factors determine premiums for National Flood Insurance Program (NFIP) flood insurance coverage. Major factors include:
The amount of coverage purchased;
The deductible;
The location, age, and occupancy of the structure;
The flood zone at the site;
The type of building; and
The lowest floor relative to the elevation of the 1% annual chance flood (for newer buildings in floodplains).
I have flood insurance and my house is in a high-risk flood zone (A or AE) according to the current map. The new map, however, will show my house as being in a low-risk zone (X). Will I have to continue to carry flood insurance when the new map takes effect?
If you have Federally or federally related financing for the property in question, you will no longer have a Federal requirement to purchase flood insurance when the new map takes effect; however, lenders retain the prerogative to require flood insurance, even for property that is no longer in a high-risk zone. 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 located outside the high-risk zone. You should have your policy re-rated using the new maps, which should lower your premium. 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% annual chance event (the 100-year flood).
My house in not in the high-risk zone according to the current map, but the new map will show it as being in a high-risk zone. Will I have to purchase flood insurance when the new map officially takes effect?
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. 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 for the cost of it. 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) with 45 days of being informed by your lender that your property is located in a floodplain. If you have insurance before the new maps take 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 of the high-risk zone).
My house was built to the flood elevation shown on the effective map at the time of construction. On the new map, my house will remain in the high-risk zone, but the elevation will decrease. What will happen to my insurance premium when the new map officially takes effect?
You should contact your insurance agent to ensure that the policy is re-rated when the new map officially takes effect. The lower flood elevation may result in a lower premium.
My house was built to the flood elevation shown on the effective map at the time of construction. On the new map, my house will remain in the high-risk zone, but the flood elevation will increase. What will happen to my insurance premium when the new map officially takes effect?
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. 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. 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 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.
My house was built to the flood elevation shown on the effective map at the time of construction. On the new map, my house will remain in the high-risk zone, but the flood elevation will increase. Will my house be considered to be in violation of NFIP regulations when the new map officially takes effect?
Any house that can be shown to have been built in compliance with local floodplain management regulations and the flood map at the time of construction will continue to be considered compliant, even if the new maps will show an increase in flood elevation or a change to a more restrictive zone designation. However, should your house be substantially damaged (if damage is 50% or more of the pre-damaged market value) and you wish to repair it, you will be required to bring the entire structure into compliance with the zone designation and flood elevations in effect at the time the repairs take place. If the structure is less than substantially damaged, you do not need to refer to the flood map when repairing damages. Please note, however, that there may be more stringent or local requirement that take precedence over those stated here. Regardless of whether your building is substantially damaged, you will need a building permit to make repairs and need to contact your local building official.
My house was built in the high-risk zone. What do I do if I want to build an addition or otherwise improve it?
If the value of the addition or improvement to the house is less than 50% of the market value of the existing structure, you need only make sure that the addition meets or exceeds the standards currently in effect at the time of construction. Under certain circumstances, only the addition needs to be elevated to the flood elevations shown on that map. Additions and/or other improvements valued at 50% or more of the market value of the existing structure are considered substantial improvements. In such cases, the entire structure must be brought into compliance with the elevations on the map in effect at the time the improvement begins. Please note, however, there may be more stringent local requirements that take precedence over those stated here. Regardless of whether your building is substantially improved, you will need a building permit to make the improvement and need to contact your local building official.