You may overpay for flood coverage (Jacksonville: foreclosure, insurance, condominium)

[amy_sk]

I read this article in the timesunion newspaper few days back and wanted to share with all of you.
In case you are in low risk zone then you should be getting low-rate "preferred risk policy".

Here it goes:

Residents find they're entitled to discount, $856 reduction.
Jacksonville.com

Checking your flood insurance premium
National Flood Insurance Program offers a low-cost preferred risk policy to property owners in areas that have a low or moderate risk of flooding. Here's how to check whether you're entitled to that kind of coverage.
Check the flood insurance policy to see if it's labeled as a preferred risk policy. - If it's not labeled that way, find the Flood Insurance Rating Map (FIRM) zone on the policy. The rating of B, C or X means the property stands a low to moderate risk of flooding. Most property owners in those zones are eligible for preferred risk.
If the FIRM zone is not B, C or X, it's not eligible for preferred risk. To double-check whether your home is classified correctly on your policy, go to floodsmart.gov. On the left-hand side, type in your street address and whether your property is residential or not, and then click "Go." The Web site will tell you whether your property is considered a low to moderate risk for flooding. If it is, then you probably qualify for a preferred risk policy.
To get preferred risk coverage, the property must be nonresidential or residential for one to four families. Residential condominium associations are not eligible. Also, property owners can't get preferred risk rates if they exceed various limits on flood insurance claims and disaster relief payments.
For more information about the National Flood Insurance Program, go to floodsmart.gov or call (888) 379-9531. Source: Federal Emergency Management Agency

[travelingfood]

For those without flood insurance, don't wait until last minute. most company stops issuing insurance when there's a named storm on the horizon.

[FFZS]

Floodsmart.gov is a good source of information.

If you house is built correctly (with permits) listed is what you should be paying for maximum coverage of 250000 structure / 100000 contents / 500 deductible:

Floodzone designation X, B, C = $349+/-

Floodzone designation AH, AO = $430+/- (Slab above the base flood)

Floodzone designation AE, A1-A30 = $1000+/- (slab at base flood)

If you are paying more than this then the policy needs to be reviewed.
Causes of being higher is due to errors, not built per building code, using an older/wrong floodzone designation.

If you ask you neighbor how much they are paying it should be within the same amount +/-100 (depends of the house). It does not matter if the insurance companies are different the premium rates are federally regulated.

Homeowners should question their insurance since they are paying for it.
I have notice various owners that have overpaid of 16 years because the floodzone was updated in 1992 but the insurance company does not check policies and keeps the renewing "machine" running: as long as they are getting the check for the premium

[dmbenz2004]

About 6 months ago I realized I was in a preferred X flood zone and have been paying AI flood zone rates, 50% more premiums. I notified my insurance company about it. It took about 6 months and their reply, they can only refund me 2 years refund.

Fema explanation is that at the time I bought the insurance, with the same carrier, 1993....the correct zone was AI....but it changed in 1995. Therefore, it was not their mistake and they refused to refund me the overpayments. I was not given any information about appealing this process. Got any ideas who I can contact.

[FFZS]

This is a common case where the homeowner does not question the insurance and just pays the renewal. The insurance company is not reviewing renewed policies to verify no changes occur unless the owner starts questioning the policy. In this situation the grandfathering rule was in affect where an owner can stay in the previous flood zone if they keep continuous coverage. This rule was created to help owners when a more stringent flood zone is created and the house will not be compliant to the flood zone. Otherwise stated, the house cannot be penalized, for being in compliance before the new flood zone. ……………………But, this rule can go the other way and the house remains in a stricter flood zone if no investigation was done to see if the new flood zone helps.
Unfortunately, I agree that your situation is not defined as a mis-rating. A mis-rating example would be if the A1 flood zone was actually an X flood zone (A1 never existed), or they had the wrong flood elevation, or floor elevation.
The main goal when maps are updated is that the owners should review the current flood zone and flood insurance (make sure it is correct), and know what flood zone they will be remapped into and how this affects them. One simple check is compare with your neighbor’s policy, the same subdivision should have a similar premium cost, if someone is higher them there might be a issue with the policy.
Example:
My house was $400,
Neighbor #1 was paying $1800, (bought the same year, foreclosure)
Neighbor #2 was paying $950, (original owner bought 35 years ago)
NOTE SAME HOUSE – SAME HOME VALUES – SIMILAR ELEVATION LEVELS
Problem:
My Insurance was done correctly
Neighbor #1 did not have an elevation certificate so the insurance agent used the age of the house, because they could not calculate if the house was in compliance to the flood zone (not a mis-rating).
Neighbor #2 was grandfathered into and older/similar flood zone, never questioned it.
Solution:
We all questioned the flood zone and actually challenge the flood zone and now are paying zero.

So Always review and question the insurance, I know it is boring to read but it could be a huge savings.

[cricketfan]

I have heard about this anomaly in the case of flood insurance. I am told that if you put a claim in after your home has been damaged by flooding and your next-door neighbor whether insured or not has not experienced any damage because of the same flood then the insurance company will reject your claim. I was told this by my insurance company.