Each year, approximately 200 people die in the US as a result of flooding. Flooding is the leading weather-related source of damage to homes across America, costing the flood insurance industry several billion dollars annually.
Flooding is an eventuality every home should prepare for, especially for homes in high-risk flood zones, such as those in Florida. Because of the risk flooding bears, you must keep a close eye on flood insurance remapping.
Flood insurance maps are valuable resources. They inform you of the risk to your home and help you secure a reliable flood insurance quote.
However, they pose a single disadvantage. They don’t always remain constant. As climate factors change, so do the chances of flooding. This process results in remapping.
If all of this is news to you, don’t worry. In this article, we’ll give you all the information you need about flood insurance remapping and why it matters.
Flood Zone Remapping: How Does it Work?
FEMA is always working on projects and updates to remap flood zones. This project is a multi-year investment to update flood zone information in some 20,000 communities. To help communities keep track of this, FEMA will provide digital maps to help keep track of the changes.
These maps aim to help communities manage their flood risks and recovery efficiently. They also seek to provide crucial information to homeowners, business owners, and others in the community so they can prepare for personal and financial protection.
Aside from climate shifts, other factors make this remapping necessary. As landscapes change with construction, surfaces erode, dams continue to decay, and other factors play their part, risks of flood vary.
FEMA will likely implement these maps within the space of one or two years. During this time, you must speak with your insurance agents and review your options. Most of all, use this time to protect your family and your property.
If You’re Remapped to Higher-Risk Flood Insurance Zones
If you find that you’ve moved to a higher-risk flood zone, there are several things you should do to protect yourself and your assets. First, insure your home against the higher risk.
In many cases, people who move to higher-risk flood zones require a different rate structure in their insurance. If you rent, it might be a good idea to talk with your landlord to understand how the insurance for your building works.
If you hold a mortgage, your lender will likely require you to update your insurance to accommodate new risks. Likewise, all federally regulated lenders must follow these requirements.
Another wise step in preparation is to get flood coverage ahead of the new map’s implementation date. This way, you can avoid coverage becoming enforced on you and you can be grandfathered in to your current rate structure for as long as the policy is active.
If you don’t seek out flood insurance for yourself, your lender will likely do so on your behalf. This phenomenon is known as “force-placed coverage.”
How do you know if your lender will take these steps? Usually, one of two things prompts this. The first is if you don’t acquire any insurance when a zone changes status. The second is if you allow your coverage to lapse once you’ve acquired the loan.
Depending on your situation, you might be able to pay less on your premiums by utilizing the Special Flood Hazard Area’s procedures. If your property becomes mapped to such an area, contact your flood insurance agent to discern your options.
Lower-Risk Flood Insurance Quotes and More
As remapping continues, you may discover you’ve hit some good fortune. Your home may shift to a lower-risk flood zone. This move wouldn’t eliminate flood risks, as really no homes in Florida are totally immune, but it does reduce them.
In situations like this, your mortgage lender may not require you to update your flood insurance. However, there are still plenty of things you can do to capitalize on this new circumstance.
First, you should retain your flood coverage. As stated above, flood risks don’t disappear in a lower-risk area. It’s prudent to continue protecting your home and household against any flood risks.
Second, confer with your agent about whether you’re eligible for lower insurance rates. If so, they can update your policy to a Preferred Risk Policy.
The chief benefit is that it may reduce your insurance rates. It may also mean you can receive a refund for any premiums you’ve previously paid. Who wouldn’t love to have some money back?
As with higher-risk zone shifts, be sure to contact your flood insurance agent for any help you might need. They can offer insight and guidance to help you determine how best to capitalize on your situation, as well as provide a flood insurance quote for you.
What if Your Zone Doesn’t Change?
Of course, it’s always possible your zone doesn’t change at all. If so, it frees you from needing immediate action. However, it’s still sensible to contact your insurance agent and review your coverages.
If nothing else, you can use this time to ensure that your home or business is protected. However, regardless of your zone, you should maintain your flood coverage, especially in Florida.
The federal government allows for a system called “grandfathering,” where those who maintain their existing flood insurance qualify for a reduced rate. This process is particularly favorable to those who move to high-risk zones.
If you move to a preferable zone, you may want to change your insurance to the new zone’s rate.
How to Begin
At this point, you might wonder what flood insurance zone you are in. If so, all you have to do is check out the FEMA Flood Map. With this information, you can better determine what steps to take to get the best flood insurance.
Now may be the time to upgrade your insurance to meet new circumstances. If you’re in Florida, be sure to reach out to our agency for a free flood insurance quote today.
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
