Pre-FIRM and Insurance (home, subsidized, charge)

[SJNE17]

Tujuleez, do yourself a favor and get more than one opinion. Here's my recommendation:

Erin Galley
Nolan Family Insurance
100 Madrid Blvd #111
Punta Gorda, FL 33950
941-639-1122

Originally Posted by Tujuleez1

It looks like we finally got the correct answer. And it's been like pulling teeth to get it. But I still don't know if this is etched in stone because the answer came through email last night and the insurance agent that sent it was gone for the day, office closed.

What started out as $2,600 for flood insurance on a Pre-FIRM house is now $6,100. We asked over and over when we got the $2,600 quote, "Is this a True Rate" and we were told yes. But now it looks like it wasn't.

When the office opens, we are hoping for a definitive answer.

[Tujuleez1]

Originally Posted by SeaRay35

Get it in writing if you want a definitive answer!
And with all the information you have collected,I have to ask why you would want a pre-FIRM home? There are no positives to your questions.

Trying to fulfill a lifelong dream - a house with a dock for a sailboat that can sail to open waters.

From months and months of scouring every property along the coasts, PG/PC was the only area we could afford. I knew nothing about FIRM anything. Never had to deal with flood insurance. I was totally new to this.

All the newer houses were out of our price range, even if we took insurance costs and changed it into loan value. We didn't think anything about older houses outside of condition and the cost to maintain.

Once we had an accepted offer on the property, we had to insure it. Then the lessons came pouring in. And they were still coming in this morning. After more questions, we got the price down considerably (about 1/3). But that will rise gradually over the next few years about another 50% At least we now know exactly what we're getting into.

[SeaRay35]

Originally Posted by Tujuleez1

Trying to fulfill a lifelong dream - a house with a dock for a sailboat that can sail to open waters.

From months and months of scouring every property along the coasts, PG/PC was the only area we could afford. I knew nothing about FIRM anything. Never had to deal with flood insurance. I was totally new to this.

All the newer houses were out of our price range, even if we took insurance costs and changed it into loan value. We didn't think anything about older houses outside of condition and the cost to maintain.

Once we had an accepted offer on the property, we had to insure it. Then the lessons came pouring in. And they were still coming in this morning. After more questions, we got the price down considerably (about 1/3). But that will rise gradually over the next few years about another 50% At least we now know exactly what we're getting into.

That really sux! Not fulfilling the dream, just the wealth of misinformation you received.
Hopefully you can turn these negatives into positives somehow Best of luck with your new home and enjoy your sailboat!

[JERSEY MAN]

Just curious, how were/are they able to give you a quote on flood insurance without you having a flood elevation certificate originally?

[Harbor Hopper]

Originally Posted by JERSEY MAN

Just curious, how were/are they able to give you a quote on flood insurance without you having a flood elevation certificate originally?

Pre-FIRM homes don't require an elevation cert to write a flood policy. In fact, providing one often makes the rates even higher!

[JERSEY MAN]

Originally Posted by Harbor Hopper

Pre-FIRM homes don't require an elevation cert to write a flood policy. In fact, providing one often makes the rates even higher!

Wow, so a Pre Firm home 3 ft. below the FEMA BFE costs the same to insure as a home 3 ft. above the BFE?

[Tujuleez1]

Originally Posted by JERSEY MAN

Wow, so a Pre Firm home 3 ft. below the FEMA BFE costs the same to insure as a home 3 ft. above the BFE?

No. Based on what I'm seeing, a Pre-FIRM house is figured today as being about 1'-2' below BFE. My guess is that FEMA knows approximate elevations of homes built before the FIRMs were established. They used a broad brush and set the rates.

But in about 3 years, whatever advantage Pre-FIRM house have today will disappear. Then whatever FEMA dictates as the BFE in your area will apply to all houses and Pre-FIRM homes will have to submit an elevation certificate or pay the max.

Again, just my take on what I've read.

[Tujuleez1]

Originally Posted by SeaRay35

That really sux! Not fulfilling the dream, just the wealth of misinformation you received.

It wasn't misinformation, it was no information.

A lot of dreams can't be achieved. I can live with that.

But the failure to advise clients, customers, or whatever buyers are called, the things they need to know so they don't throw money into the wind is kind of hard to accept.

On the other end is the buyer who never has that awakening hit them that tells them something may be really wrong. They could buy a Pre-FIRM house believing they will always be protected with flood insurance or that they can update and remodel the house as they wish without meeting the grim reaper and none of the people in the industry warned them, educated them, offered this kind of information, etc.

Now THAT really sux.

[Big House]

Originally Posted by Tujuleez1

It wasn't misinformation, it was no information.

A lot of dreams can't be achieved. I can live with that.

But the failure to advise clients, customers, or whatever buyers are called, the things they need to know so they don't throw money into the wind is kind of hard to accept.

On the other end is the buyer who never has that awakening hit them that tells them something may be really wrong. They could buy a Pre-FIRM house believing they will always be protected with flood insurance or that they can update and remodel the house as they wish without meeting the grim reaper and none of the people in the industry warned them, educated them, offered this kind of information, etc.

Now THAT really sux.

That's why we are here. You are now our flood insurance "go to". SOME Real Estate agents try, but they aren't knowledgeable abut all this, and by the terms of the sales agreements they don't have too, are not supposed to, and are protected from knowledge about insurance or other particulars about the properties. The buyers have to beware, and assumes the risk. Most of us try to educate people about the positive aspects of living here, but we also continue to warn about the pitfalls. Insurance here is definitely something we try caution buyers about. It effects each home and each buyer differently.

[SandyJet]

Originally Posted by Juliekristine629

What did you do to have this 'grandfathered' status? How long have you lived in the home with insurance?

I bought flood insurance while home was an X and kept it in force after I bought it. BTW pre-firm grandfathered subsidized homes that are primary have a longer phase in to full rates than secondary homes and avoid the $250 surcharge.