Homeowners Insurance Network Clay

Flood Insurance Update - Welcome to Localism

I participated in a discussion regarding flood insurance recently at my office (Preview Properties, PC). Of course, with the redrawing of FEMA flood plain maps, there has been a lot of confusion for everybody involved – insurance agents, real estate professionals, surveyors, and consumers. The only party not confused seems to be the Federal Emergency Management Agency (FEMA). Of Michigan’s 83 Counties, 59 will have re-drawn flood maps but right now only 22 have been completed. Here’s an interesting State statistic for Michiganders. For the years 1978 through 2009, $284.4 million dollars left the State in flood insurance premiums. In that same time, $45 million came back in the form of claims payments. Not a very good return for us as a State. A few basics. Federal flood insurance covers only the structure, not personal possessions. Additional flood insurance policies are available through the National Flood Insurance Program (NFIP) and your homeowner’s insurance carrier for personal items, but that coverage is also quite limited or quite expensive. Rates are better if your municipality participates in the NFIP. As of 9/28/2011 there were no Livingston County listings, but Augusta and Ann Arbor Townships and the City of Ann Arbor were listed for Washtenaw County. If your property is in a flood zone, you have to pay for flood insurance. Period. However, with the re-drawing of flood maps (still in progress for much of the nation – and parts of our State), some areas may not have been mapped properly and there could be properties that qualify for exemption. A Letter of Map Amendment (LOMA) will be needed, and this is definitely not something you want to do yourself. Your ability to acquire a LOMA will depend largely on the lowest point of your home’s exterior, and the best way to determine this to FEMA’s satisfaction is to have a surveyor come up with the elevation. A surveyor experienced with flood insurance is your best bet.

Clay

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