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I'm in AE and my neighbors (whose 1 story ranch survived Hugo...although they had water up to just underneath the floor)...my neighbors swear they can't get insurance. Sure it may just be so expensive that they don't want it, but they tell us they can't get it at all.
They live their lives like everyone else, and it hasn't ended their world.
Yikes - what neighborhood, if you don't mind me asking?
It's probably not that the property is uninsurable, it's just that State Farm doesn't want to insure it. I used to have a home in WA, not in a flood zone, and it was hard to find insurance. Some companies pick and choose which areas around here they want to insure. One year they may insure, the next not, the next they may insure again. Like others said, it works best going through an insurance broker.
+1
And it can change as to whether a company will write for a certain area. They won't write more than a certain % in a certain area. That way, if a Katrina type storm hits an area they cover, they're not wiped out. For instance, if company A covers NC, SC, GA and FL, they won't want 75% of their total underwriting to be all in one state. If that state gets hit hard, they won't be able to cover it all. As their coverage percentages change (because they grow bigger or policies end), they may start writing again in a state that they stopped writing in previously or vice versa. That's how it was explained to me.
Quote:
Originally Posted by Baconisgood
We had a licensed surveyor send in an Application for Letter of Map Amendment (LOMA) and got out of required flood insurance since our home was elevated high enough. An insurance company and many real estate agents won't mention getting a LOMA because they aren't up to date on the issue.
When its required is due to proximity to water, wave action, tide and so on. Elevation is the key to reducing or eliminating the flood requirement. We still elected to buy, but it much reduced, from $785 down to 450 annually.
Yes, there are actually people who specialize in the LOMA letters. And if you require flood insurance, it will probably pay to get an elevation certificate. If you're buying a house, check to see if there is one already. It can save a considerable amount in insurance.
Here's a link to a company that will quote Lloyds flood coverage online to give you an idea of what it might cost: https://justin-bryer-8axt.squarespac...south-carolina
For my insurance it was cheaper to go through FEMA but for my daughters which is downtown below the BFE, it was cheaper to go through Lloyds. I've never heard of lenders not accepting Lloyds but I've wondered about it.
As for homeowners insurance, I've had luck with QBE writing policies on my properties on James Island and my daughter's townhouse downtown. I got the policies through Wells Fargo bank but I imagine you can to to QBE directly.
I live in AE and insurance for our area is specialized. Many larger companies don't insure, but have agreements with other smaller companies that do and will give you multi policy discounts. Allstate is one. Now if you are in a flood zone and your home was built below flood levels then that may be a problem. While we're AE, we're not elevated but are on a crawl space that elevates the home the required amount.
We currently have the gov backed flood policy through Allstate, and while they offer additional flood insurance, we've opted not to have it at this time.
In recent insurance shopping I've found it cheaper with the independent Agents with A rated companies and will probably be switching at next renewal.
That site has a calculator for flood insurance rates. I threw some numbers at it. $400K home in MTP, 29464 and $80K worth of contents, $5K deductible. It came back about $3K per year.
That site has a calculator for flood insurance rates. I threw some numbers at it. $400K home in MTP, 29464 and $80K worth of contents, $5K deductible. It came back about $3K per year.
That doesn't surprise me. Note that FEMA only covers up to $250k of building coverage. For more than that you would have to go to the excess flood insurance market.
One of my rentals is on the edge of a flood zone. My flood ins went from ~$300/yr to $1550/yr overnight when the Biggert/waters act kicked in. Wells Fargo insisted I carry full value coverage even though I only owed $19k left on the mortgage. I ended up paying off the mortgage and dropping the coverage down to $30k which I figure will cover any minor rising flood water damage. I was not happy that WF refused to let me drop the coverage to less than full value even though they only had $19k risk in the house.
Reran the numbers with $150K house coverage and $50K contents. Came out a $1,400.00 per year. Not bad for costal living.
Except a 150k policy is way too little to cover anything with construction prices today. If you can afford the 250k home, I don't recommend being under insured (especially in a coastal area, where flooding happens seasonally). Unless you are looking at condos or huge fixer uppers: coastal homes for 150k in Charleston don't really exist.
umm, I just bought an $85,000 townhouse as another rental property. Also as I pointed out about my other rental which is a single family detached on a slab that's worth $200k+, the worst case scenario I can imagine is some rising flood waters that ruin the flooring, cabinets, hvac unit, doors and some trim and baseboard. It's pretty unlikely that the whole house would be lost. I figured $30k coverage to be enough but you could double it to be safer.
This house has never flooded including during Hugo. I would feel different if it were on a barrier island but I think the logic that applies to this house would apply to most of the suburban, non waterfront houses around Charleston.
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