Tag Archives: save flood insurance agency inc

12 Dec

Mandatory Flood Insurance

One of the things that’s confusing for homeowners is the question of mandatory flood insurance.  As a homeowner, do I need flood insurance?  The question really lies in where your home sits in relation to FEMA’s flood zone maps.   That is the key difference between mandatory flood insurance, or not needing to carry it at all.  Having said that, keep in mind that almost a third of all flood insurance claims happen in low to moderate risk zones, and normal homeowner’s insurance doesn’t cover flooding events in their list of covered perils.

Get a flood insurance quote

Mandatory Flood Insurance basic concepts:

Where is my house located?

Luckily, the public has access to FEMA’s flood risk maps, which can be accessed here.

You will want to pull up the location of your home and see if it resides in a Special Flood Hazard Area (SFHA)  – these are commonly marked on the map by “A” zones.  “X” zones are a lower (.02%) annual risk of flooding, verses the A risk (traditionally called a 100 year flood plain, which represents of a 1% chance of a flood every year)

Take for example the picture below.  Now, this flood zone hazard map can be a little daunting and difficult to read to the untrained eye, but as a basic concept – if your home were covered even partially by the blue shading, that would mean you’re in an AE zone or special flood hazard area, and mandatory flood insurance would be the result.  Now, remember it’s not the government mandating you have the insurance, but your mortgage company.  Because they have a financial stake in your property until the loan is fully paid off, they will be the ones requiring that you as the owner carry this mandatory flood insurance.

mandatory flood insurance map

Having noted this, once your mortgage is paid off, you won’t have mandatory flood insurance, but it’s still probably a good idea to carry it.  If you reside in a home that is in the orange shaded area, this would be an X zone representing the lower flood risk – but there’s still a flood risk.    Take for example the events of Hurricanes Irma and Harvey –  Harvey in particular, 80% of the victims of the event didn’t carry flood insurance.   Want to read more on that?  Check out this article from USA Today.

So, yes – mandatory flood insurance is a thing that can be imposed on you by your lender.  But even if flood insurance isn’t mandated, it’s a pretty darn good idea to carry it even if you think your home will “never flood”.

Non Mandatory Flood Insurance

I personally live in a very dry state, Colorado.  There’s no active streams or rivers anywhere near my home, only an old dry gulch.  Below are some images from a video I shot in the spring of 2016 outside our home.  A normally dry area was inundated with water just from one day of heavy rain.  It can happen anywhere!  So, if you are looking to get flood insurance at an affordable rate, you can get a quote with Save Flood Insurance Agency Inc today.

street after heavy rain caused flash flooding

30 Nov

Do I need Flood Insurance

Do I need flood insurance?

Hello there!  If you’ve stumbled upon this post whilst searching the internet, you were probably curious about flood insurance.  “Do I need flood insurance” is a pretty common thing for a homeowner to ask, especially if you live in a low lying area, or near a river, lake or the ocean.  The answer to your question can vary, but “do I need flood insurance” is a very common thing we hear in this business.

Now first off, there should be a distinction between the phrase “do I need flood insurance” and “should I have flood insurance”.  Technically,  if your property does not sit within what has been mapped by FEMA as a Special Flood Hazard Area (SFHA for short)  you may not be required by your mortgage company to carry flood insurance.  However, on the other side of the coin – I think that every homeowner should have a flood insurance policy. You must remember that your normal homeowner’s insurance will not cover the peril of flood ( things like broken pipes or an overflowing bathtub may be covered in a typical homeowner’s policy, but those are not by definition the peril of flood.

Flood is defined in the insurance industry as:

  • A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder’s property) from:
    –Overflow of inland or tidal waters; or
    –Unusual and rapid accumulation or runoff of surface waters from any source; or
    –Mudflow; or
  • Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.

So, do I need flood insurance?

At Save Flood insurance agency Inc, we do suggest that every homeowner have a flood insurance policy.  Even if you think your home could never flood, you might be surprised to learn that over 25% of all flood related claims occur in moderate to low risk flood zones.  Take for example all the recent hurricanes and extreme weather events.  Even if you’re not located near a body of water, heavy sustained rains, snow storms, and other weather events can potentially flood your home.

If you would like to get a free quote for flood insurance, please fill out the form below.  Our private market underwriters and selective systems allow us to save you up to 50% on a flood policy when compared to the NFIP / FEMA programs.

21 Nov

What is a Flood Zone?

Flood Zone - what is a Flood zone?

In the world of flood insurance, the most important factor in rating a particular property is determining the flood zone the property resides in.  Now, it’s important to remember that every property is in a flood zone, and flooding can happen literally anywhere!  Your home may sit on a hill or an elevated position, but it still can potentially be susceptible to a flooding event.

Understanding what a flood zone is

Flood zone maps were introduced by FEMA and are known as Flood Insurance Rate Maps (FIRMs).  These maps show the relative risk a property has when calculating for the proximity to different low lying or water containing areas.  The flood zones are broken into several categories.

Flood hazard areas identified on the Flood Insurance Rate Map are identified as a Special Flood Hazard Area (SFHA). SFHA are defined as the area that will be inundated by the flood event having a 1-percent chance of being equaled or exceeded in any given year. The 1-percent annual chance flood is also referred to as the base flood or 100-year flood. SFHAs are labeled as Zone A, Zone AO, Zone AH, Zones A1-A30, Zone AE, Zone A99, Zone AR, Zone AR/AE, Zone AR/AO, Zone AR/A1-A30, Zone AR/A, Zone V, Zone VE, and Zones V1-V30. Moderate flood hazard areas, labeled Zone B or Zone X (shaded) are also shown on the FIRM, and are the areas between the limits of the base flood and the 0.2-percent-annual-chance (or 500-year) flood. The areas of minimal flood hazard, which are the areas outside the SFHA and higher than the elevation of the 0.2-percent-annual-chance flood, are labeled Zone C or Zone X (unshaded).  Read more here on the FEMA website.

Want to check to see if you’re in a flood zone?  Use the FEMA National Flood Hazard Map layer and type in your address. 

Basically, you can break down a flood zone into two basic categories:

High flood risk areas

These areas area in what is commonly referred to as residing in a “100 year flood zone” and has at least a 1% annual chance of flooding.   That equates to a 26% chance the property will flood over the life of a 30 year mortgage!  Homeowners that have a federally insured mortgage that live in these areas will be required by law to carry flood insurance.   On flood zone maps, these will be labeled as an “A”  or “V” zone.

Moderate & low flood risk areas

These areas still run the risk of flooding, but it is much lesser than those that reside in a high risk area.  On flood zone maps, they are labeled with the letters B, X or C .  While property owners in these low to moderate risk areas aren’t required to carry flood insurance, it is still recommended as a regular homeowner’s insurance policy does not cover the peril of flooding.

Obtaining Flood Zone Insurance

Save Flood Insurance agency Inc offers a private market alternative to the NFIP policies offered by the Federal government.  If you would like to get a quote for flood insurance, please fill out the form below.

17 Nov

Colorado Flood Insurance

Colorado flood insurance Save Flood Insurance Agency Inc

Colorado -the mile high state!  If you have ever been to Colorado you’d think that it’s a mostly dry state without a lot of water – and that, for the most part is true.  So you may be thinking, why would I ever need Colorado flood insurance?  My home won’t flood in a dry state like this!

Well, that’s a dangerous mentality to have, as Colorado does flood – and when it does the results can be disastrous.   Colorado, in fact, has a long list of catastrophic flooding events, which usually are the result of unusually heavy rain that overburdens the soil and turns normally calm rivers and streams into raging torrents.    This website contains information on some of the most damaging and deadly floods in Colorado history – with both fascinating and terrifying information.

Most Deadly flood in Colorado History:

The Big Thompson Flood – July 31st 1976

  • Damage – over $35.5 million
  • Death toll – at least 139

This flash flood occured when over 14 inches of rain fell in a 4 hour period in the mountains of Rocky Mountain National Park, near the town of Estes Park.   The Big Thompson river, normally a depth of 18 inches, turned into a 20 foot tall wall of water

To learn more about the Big Thompson Flood, read this archive from The Denver Post.

Most Costly Colorado Flood:

2013 Boulder County Floods

The real tragedy of these massive flooding events is that the vast majority of victims, thinking they were safe, did not carry flood insurance.  That’s why Colorado flood insurance is important – over 30% of flood claims occur in “low risk” flood zones – and the real truth of the matter is that every property is in a flood zone.    While many don’t want to pay the premium to obtain flood insurance, the consequences of being without and getting flooded can be financially ruining to many.

According to a CNN report, the number of people in Colorado that were insured for flooding was very low.

Flood damage is not covered by private insurers. Instead, it is covered by the National Flood Insurance Program (NFIP), part of the Federal Emergency Management Agency. But Tom Larsen, senior vice president of of Eqecat, said that because very many of the homes damaged by the flooding are not in flood plains, the number of people with flood coverage is very low.

“NFIP is usually only taken when it’s mandatory by a mortgage lender,” he said. “In coastal areas, which are susceptible to hurricanes, there’s a high concentration. That’s why the payout from those storms is so much greater. But the percentage of insurance in this one is going to be a very low number.”

Mike Barry, spokesman for the Insurance Information Institute, agrees with Larsen’s estimate about how few homeowners and businesses affected by the disaster are covered by flood insurance. And he said local governments generally do not have coverage either.

-Source – Colorado floods: Costly and often uninsured, Chris Isidore, @CNNMoney

Get a Quote for Colorado Flood Insurance

Flood Insurance is available both from the Federal Government (NFIP)  or from private carriers, like Save Flood Insurance Agency Inc.  Because we are selective with our underwriting, we are able to provide flood insurance for less premium.  Fill out the form below to inquire about getting a Colorado Flood Insurance quote.

13 Nov

Flood Protection 101

Flood protection basics - Save Flood Insurance Agency Inc

This content courtesy of Fairfax County, VA

 

Flood Safety: How to Prepare and Protect Yourself from Floods

 

Residents should be prepared for possible flooding over the next few days if heavy rain arrives and area creeks and small streams rise significantly. According to the National Weather Service, floods cause more damage ($4.1 billion) and loss of life (127 people on average) annually nationwide than any other natural disaster. If you live in a flood-prone area, it’s important to protect yourself and your family from the consequences of flooding.

A flood watch means that flooding is possible but not imminent. A flood warning means that flooding is already occurring or will soon occur.

Government officials remind residents that this is a good time to review your family disaster plan and be prepared to implement it. The following advice may help protect lives and reduce damage before, during and after severe storms and flooding.

BEFORE THE STORM

  • Monitor your local news and NOAA Weather Radio, or visit the National Weather Service’s Web site at www.nws.noaa.gov for the latest weather information. Battery powered weather radios are available at most stores that sell electronic equipment.
  • Move to higher ground, away from creeks, streams, rivers and storm drains. Flash floods can sweep over an area without warning, and you may only have minutes to get to safety.
  • Listen for distant thunder because water from faraway storms may be headed your way. Be aware that flash flooding can occur up to 12 hours after heavy rains.
  • Learn the safest route from your home or place of business to a safe area away from the high winds or flooding. Keep your vehicle fueled and have an updated local map in your car.
  • Move livestock and animals to higher ground; bring pets inside.
  • Store extra drinking water. Fill up clean plastic bottles with clean water if you live in a flood-prone area.
  • Move your valuables and furniture to higher floors of your home.
  • Check your gutters to make sure they are clear of leaves and debris.
  • Check your family emergency kit to be sure it is stocked with essential supplies to last a minimum of three days. Include items like flashlights and batteries, battery-operated radio, weather radio, water, canned food and manual can opener, first aid supplies and medications. Make an emergency kit with supplies for your pet, as well.
  • Review your family emergency and communications plan. Decide on a meeting place away from home where you and your family will gather if you need to leave your home and family members become separated.  The best flood protection comes from good communication before an event happens!

DURING THE STORM Flood protection

  • Know how to get emergency information for your area. 
  • Keep your battery-operated radio tuned to a local station, and follow all instructions. If you are told to evacuate, move out of the house or building to safe, high ground before access is cut off by floodwater.
  • Never walk or swim through swiftly moving water. Avoid already-flooded areas. Floodwaters that are above your knees are dangerous. Turn around and go back to higher ground.
  • Never try to cross standing or moving water in a vehicle. Water that is two feet deep can carry away most cars, including SUVs. If you find floodwaters on the road, turn around and find an alternate route.
  • Abandon your vehicle immediately if it becomes surrounded with water or the engine stalls. Seek higher ground immediately.

AFTER THE STORM

  • When it is safe to return to your home, be sure that the structure is not visibly damaged and in danger of collapsing before entering.
  • Do not use electrical appliances that have been wet. Do not turn on damaged electrical appliances because of the hazards of electric shock or fire.
  • Watch for live electrical wires. Be sure the electrical current is turned off and do not attempt to turn on any electrically-operated light or appliance until an electrician has checked your system.

30 Oct

Private Market Flood Insurance

private market flood insurance

Most people that purchase flood insurance do so because their home is located in a FEMA flood map zone – making the insurance mandatory for them to obtain a home mortgage.  But did you know that there are private market flood insurance alternatives?  That’s where Save Flood Insurance Agency Inc comes in.

Many people that are mandated to buy flood insurance find the maximum limits provided by the NFIP, or National Flood Insurance program, are well under the amounts it would require for them to cover the replacement cost of their home.  The NFIP provides for a maximum of $250,000 in coverage, with a maximum of $100,000 in contents covered.  However, the NFIP has some drawbacks.   Namely, the policies of the NFIP do not cover any contents that may reside in a  basement – so if you have a basement full of personal property you may be out of luck.  That’s where our private market flood insurance can make a huge difference.

Save Flood Insurance Agency Inc Private Market Flood Insurance

What makes our policies different?  Here’s a few examples:

  • Our waiting period is 15 days, whereas the NFIP program has a 30 day waiting period
  • our policies are A rated – you know you will have a solid policy
  • Our policies follow all required guidelines for lenders
  • You will save anywhere from 20% – 50% on your annual premium
  • We don’t require an elevation certificate, which can be difficult and time consuming to acquire.

We strive to make obtaining flood insurance an easy process –  and we hope that you seek out Save Flood Insurance Agency Inc for your private market flood insurance needs.  If you are looking to get a quote for flood insurance, please fill out the information form below.