Will My Property Influence a Huge Premium Increase?
Of the many factors that determine the full risk rate of a structure, the single most important is the elevation of the structure in relation to the Base Flood Elevation (BFE).
What is Base Flood Elevation?
A community's Flood Insurance Rate Map (FIRM) indicates the area of the community that has a 1% or greater annual chance of flooding. That area is called the Special Flood Hazard Area (SFHA), or high-risk zone. Put another way, the BFE is the elevation where there is a 1% or greater annual chance of flooding. Generally, the higher the elevation above the BFE, the lower the flood risk.
Contact Insurance by Allied Brokers to find out if your property is in a high-risk zone.
Rate changes will have the greatest effect on properties located within a Special Flood Hazard Area (SFHA) that were constructed before a community adopted its first Flood Insurance Rate Map (FIRM) and have not been elevated.
Call us @ 650-328-1000 and save now!
What should I know when I contact Insurance by Allied Brokers?
You need an Elevation Certificate, which is a form completed and signed by a licensed engineer or surveyor. The elevation certificate will have your property's elevation in relation to SFHA. By comparing that information with your area's FIRM, we can calculate the lowest possible premium you should be paying, based on the amount of coverage desired.
What happens if my property was built pre-FIRM?
Starting this fall, subsidies will be phased out for businesses, properties of one to four residences that have experienced severe repetitive loss and properties that have incurred flood-related damages where claims payments exceed the fair market value of the property. Premiums for these properties will increase by 25% per year until they reach the full risk rate.
Okay, but my property is a primary residence (single family)
Primary residences in SFHAs will be able to keep their subsidized rates unless or until:
- The property is sold
- The policy lapses
- You suffer severe, repeated, flood losses (or)
- A new policy is purchased