Flood and Excess Flood Insurance
Flood insurance has been in the news lately and will continue to be going forward, but flood insurance should be considered by everybody who owns a home. It not only covers tidal surge and river flow but all water that can enter the house from outside, this includes surface run off in the event of a heavy downfall or saturated ground that allows water to enter the house because it has nowhere else to go.
The National Flood Insurance Program (NFIP) overseen by FEMA provides underlying flood limits of $250,000 for the structure and $100,000 for personal property through various standard insurance carriers. It is a bare bones policy with many restrictions but essential for the coverage’s it does offer, everything on the first floor and above and the house mechanicals in the basement.
The premiums for these policies are predicated on FEMA flood zone maps, there are 4 zones, X or B zone, AE zone, VE zone and a CBRA (Coastal Barrier Recharge Area) zone.
If a house is in a flood zone AE, VE or CBRA, it is very likely that a mortgage bank will require a flood policy on the house.
Excess flood coverage is like a flood “umbrella”, it layers above the $250,000/$100,000 of NFIP coverage. You can buy it in increments up to the full dwelling limit of the house. The premiums are, again, determined by the zone.
The JWA recommends primary flood insurance for all houses in any zone and can make sure the premium is correct per the designated zone.