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3 Myths about Flood Insurance Debunked

flood insurance myths

Flood-Insurance-Quote1.) I’m too close to the water for flood insurance!

I hear this one all the time. “Can I even get flood insurance on this home? It’s so close to the water!” The answer is yes! The concern is not the distance to tidal water; it’s the height of the structure above sea level. Most homes on Long Island are located in flood zone X. This is a non-hazard zone and banks will not require flood insurance to obtain or maintain a mortgage. A typical flood insurance policy in flood zone X will run you about $462/yr.

 

2.) Flood zones are bad news for new home buyers

Well maybe not. Let’s make this simple. Flood zones are broken into 2 categories; in the Special Flood Hazard Area (SFHA) or out of the SFHA. Most homes on Long Island are located outside the SFHA.
If the home IS located in the SFHA it’s typically located in flood zone AE. Properties in flood zone AE have a 1%, or greater, chance of being inundated by a flood in any given year and banks will require flood insurance as part of the  mortgage requirements. Premiums in zone AE will vary depending upon several factors like; numbers of stories, if it has a basement, flood vent type, elevation etc. The relation of the homes base flood elevation (BFE) to mean sea level is measured with an elevation certificate that will generate a premium that correlates with the homes risk of being flooded. Premiums range from $2200-$3200 per year for homes located in flood zone AE.

3.) I should shop my flood insurance rates every year

You can… but you would be wasting your time. Flood insurance rates are set by the National Flood Insurance Program (NFIP). The NFIP is a division of the Federal Emergency Management Agency (FEMA) and rates are federally regulated. The long/short is that you will not find a lower premium unless you change coverage options or elevate your home.
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View the Coastal Insurance Video Library  to find helpful video’s explaining everything from, how to save money on Homeowners Insurance to an easy explanation of Flood Insurance. Call today (631-782-3175) to speak with one of our underwriting experts.  Fast Quotes, A.M. Best Rates & Free Advice.


Learn about the National Flood Insurance Policy Changes made April, 2016


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4 min read. September, 29, 2021 – by David Clausen Although several new private market flood insurers have entered the market in recent years, FEMA’s National Flood Insurance Program (NFIP) still serves as the base policy for most homes insured for flooding. The...

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