Flood Insurance Changes Catch Many By Surprise

Dated: 07/08/2013

Views: 1227

Congress recently passed the Flood Insurance Reform Act of 2012 which made a number of changes to the Federal Emergency Management Agency (FEMA), as well as the way the National Flood Insurance Program (NFIP) is run.

One of the key changes requires the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders. These changes have already meant substantial premium rate increases for many and can create additional costs to homebuyers when buying a new home. Furthermore, in most cases homebuyers are no longer allowed to "assume" the Seller's existing policy, meaning they must apply for and pay the new rates. The application process alone can take 3-4 weeks so it is prudent to investigate the flood insurance needs and costs well ahead of time, otherwise it could delay settlement. In rare cases the new cost may even be prohibitive enough to make you think twice about buying a specific home!
Fortunately FEMA does provide some helpful links and tools to assist you in determining the flood status and needs of any particular piece of property. You can visit FloodSmart to get answers to most of your questions and you can also rate your risks and get estimates for your specific property HERE.
So moral of the story is; make your flood insurance due diligence as important as your home inspection to avoid any surprises down the line!

Latest Blog Posts

Charming Ranch Home in Wescott Plantation for Under $200K

4816 Hearthside Drive, Summerville, SC, 29485 3 Bed  •  2 Bath  •  1,355 sqft This Well-Kept & Charming 3BR/2.5BA Ranch is Located in Wescott Plantation of

Read More

Charming Ranch Home in North Charleston Back on the Market!

2652 Martha Drive, North Charleston, SC, 29405 3 Beds  •  2 Baths  •  1,069 SqFtYour Search for a Low Maintenance Lakehouse Escape just an hour outside of the

Read More

AMAZING VALUE on Stunning Lake View Home in Summerton, SC

1046 Island Court, Summerton, SC, 291484 Beds   •   3 Baths   •   1,400SqFt.$220,000Your Search for a Low Maintenance Lakehouse Escape just an hour

Read More

PRICE REDUCED! On Elegant End Unit Townhome in Wescott Plantation

       4761 Horse Drawn Way, Summerville, SC, 29485 3BR/2.5BA   •   1,875 SqFt.$210,000Welcome Home to this Low Maintenance Move-In

Read More