The Federal Government is fading out the subsidizing of flood insurance for current policy holders and is not subsidizing flood insurance on new acquisitions. For the cash buyer this means that the decision to buy flood insurance for their at risk home might be a bit more difficult, especially when purchasing a non elevated home. Elevated homes will continue to have relatively low premiums for flood insurance. For the current home owner there is a mechanism in place for incremental premium increases to the full – non subsidized rate. Unless things change all owners, potential buyers and their real estate and insurance advocates need to understand what to expect and move forward accordingly regarding flood insurance pricing. Both buyers and their agents need to determine specific pricing with quoting using an elevation certificate. The ability to quote insurance “PRE-FIRM“ no longer exists. Each property requires an elevation certificate in order to quote flood insurance. It would be dangerous to generalize flood pricing , especially with homes that are not elevated. Homes built on slab can vary significantly regarding their flood elevations and the premiums could be a dis-qualifier. Flood premium may become a more important part of the qualifying process regarding the purchase of a specific property.
Special thanks to our guest blogger:
Robert E. Slusher
Robbins Insurance and Financial Services
visit us at Robbinsinsurance.com