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