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Old 06-10-2014, 11:41 PM
 
90 posts, read 122,437 times
Reputation: 152

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My wife and I are considering buying a home in the Clearwater fl area that's in an AE flood zone. We're paying cash. It's a pre-firm wood frame house. The house doesn't need a lot of work ...mostly cosmetic things... The 50% rule shouldn't be an issue... No history that I can find of any flood problems or damage...the neighbors say there haven't been any floods...The BFE for the area is 11ft...I'm not sure how low the house is under the 11ft. I'm in the process of getting a elevation certificate.....I've been looking at the insurance situation and was quoted a price of $1200 for flood insurance. I've got a lot of questions for the insurance people about the future of my flood insurance but I was wondering if anyone out there understands the recent changes...Will my rates will go up to the actuarial rates eventually? If I sell the house in a few years, what will the new owner have to pay? Is the latest legislation just a temporary slow down of the rate increases? I'm having a hard time getting straight answers from people. Seems to be a lot of confusion...We really like the house but, I wonder if I should get involved with it.. Thanks.
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Old 06-11-2014, 06:41 AM
 
3,083 posts, read 4,858,470 times
Reputation: 1954
Pre-Firm will eventually mean nothing in regards to flood insurance...hope your real estate agent told you that. The key is the elevation certificate...NOT the actual flooding. The flood insurance folks calculate rates based on the existing frequency of a 100-year event based on their "models" (which are not always accurate, hence the need for constant revisions).

You don't want a property that is out of compliance...period. It will be much harder to sell, especially if many of the homes in the neighborhood are in compliance. If it will only take replacement of the HVAC system to get it in compliance, then it may be worth it. I would take this approach rather than trying to predict what will happen with the flood insurance premiums. In Compliance now versus Out of Compliance now. If there are map changes, they could swing in either direction...no use worrying about that, and they are far more infrequent than many believe. Folks are just becoming more aware of where flood properties are in this info age.
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Old 06-11-2014, 07:05 AM
 
Location: Sneads Ferry, NC
13,371 posts, read 27,044,128 times
Reputation: 6980
Quote:
Originally Posted by tgtguy111 View Post
.We really like the house but, I wonder if I should get involved with it..
I asked the moderator to move this one to the Florida forum. However, the advice from HP91 is good.
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Old 06-11-2014, 12:31 PM
 
4,538 posts, read 6,449,583 times
Reputation: 3481
Quote:
Originally Posted by tgtguy111 View Post
My wife and I are considering buying a home in the Clearwater fl area that's in an AE flood zone. We're paying cash. It's a pre-firm wood frame house. The house doesn't need a lot of work ...mostly cosmetic things... The 50% rule shouldn't be an issue... No history that I can find of any flood problems or damage...the neighbors say there haven't been any floods...The BFE for the area is 11ft...I'm not sure how low the house is under the 11ft. I'm in the process of getting a elevation certificate.....I've been looking at the insurance situation and was quoted a price of $1200 for flood insurance. I've got a lot of questions for the insurance people about the future of my flood insurance but I was wondering if anyone out there understands the recent changes...Will my rates will go up to the actuarial rates eventually? If I sell the house in a few years, what will the new owner have to pay? Is the latest legislation just a temporary slow down of the rate increases? I'm having a hard time getting straight answers from people. Seems to be a lot of confusion...We really like the house but, I wonder if I should get involved with it.. Thanks.

Pre-firm for a PRIMARY Residence will get you grandfathered at least through 2017. And that rate is good.

Rates can't rise more 18% a year but most likely if pre-firm, primary and you dont get any damage in excess of 50% or multiple claims within a ten year period you are good.
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