Flood Insurance

We provide real estate services to buyers and sellers in Pennsylvania (Berks County, Chester County, Delaware County, Montgomery County, Philadelphia, Drexel Hill, Haverford Township, Havertown and Upper Darby) as well as in New Jersey (Brigantine, Atlantic City, Ocean City, Camden County and Gloucester County).

Flood insurance is in addition to a homeowners policy.  It typically covers damages caused by an overflow of lakes, rivers, streams and ditches, or from the unusual and rapid accumulation or runoff of surface waters after heavy rainstorms.  Factors that can add to flooding include debris in the waterway, small road culverts and bridges, as well as frozen or saturated ground.

The Federal Emergency Management Agency (FEMA) who administers the National Flood Insurance Program (NFIP), has designed flood zones on NFIP maps based upon studies that were conducted to reflect the long-term projection of a flood risk.  Because of the infrequent occurrence of flood events, the designation of Special Flood Hazard Areas (SFHAS) is not based only on past flooding occurrences.

Buyers may be required by their lender to obtain flood insurance.  If the lending institution is federally regulated or making federally-backed loans, the institution must review the NFIP maps to determine if the building is located in a Special Flood Hazard Area (SFHA).

Since flood insurance is not available through regular homeowners policies, it must be purchased as a separate, stand-alone policy provided by the federal government under the NFIP.  As a convenience, flood insurance is available for purchase through local insurance agents.

The cost of flood insurance is based on:  the flood zone the property is located in, the elevation of the home, and the year the home was built.

When purchasing a flood insurance policy, there is a standard 30-day waiting period for new applications and endorsements for coverage.  Exceptions to the waiting period include a policy that is purchased in connection with a mortgage transaction.  Flood Insurance policies are annual and cannot be cancelled due to repeat losses.

Flood Insurance Q&A

Q.    Does my homeowner insurance policy cover flooding?
A.    Typically, no.  Most standard homeowners policies do NOT insure against flooding.

Q.    I think I live in a safe area.  Should I still be covered?
A.    Yes.  Between 25% and 30% of all flood claims come from medium-risk and low-risk areas.

Q.    Who offers flood insurance?
A.    The Federal Emergency Management Agency has a National Flood Insurance Program that offers federally backed flood insurance in most communities through local, independent agencies.

Q.    What does it cover?
A.    It will reimburse your covered losses as defined in the policy even if the flood is not a federally declared disaster.

Q.    Is it expensive?
A.    The average flood insurance premium is about $300 a year for an average of $98,000 in coverage.

Q.    Can I wait until a storm is predicted to buy the coverage?
A.    No.  Flood policies take 30 days to become effective, which means waiting could be disastrous.

Q.    Doesn't the government pay insurance in a disaster?
A.    The government will give you a loan, not insurance.  The loan has to be paid back... with interest.  And, if the flooding is not declared a disaster, you would get nothing at all.

Choosing your Agent wisely. Any agent will show enthusiasm and will want to list your house for sale but choose your agent based upon:

1. Experience at listing and marketing houses for sale.

2. Ability to use technology to market your house world wide to buyers 24/7.

3. Reviewing with you a comprehensive Marketing Analysis of home sales in your area.

4. Ability to offer a written detailed MARKETING PLAN that will get your house sold at the highest possible price.

Working with a full-time professional real estate agent is a must.  Choose your agent by asking questions of him or her.  Find out how knowledgeable they are about houses currently for sale in your price range and also of houses that have recently sold. Can your agent recommend a good lender that has the reputation of excellent customer service and low rates to assist your new buyer with financing?  A good listing agent can get your house sold quickly at TOP DOLLAR and help you find a new home.

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Last modified:  08/22/2010