When it comes to flood insurance, knowledge is key

by Aaron Stein |

We had someone come in recently about flood insurance.

She was paying $3,374 a year. It was a lot. She had gotten an elevation certificate, but her agent said it wouldn’t help.

Fortunately, the surveyor who did the certificate knows our office — and told her to check with us.

It turns out the correct rate for her insurance is $690!

Flood insurance isn’t as simple as it used to be; it’s all about knowing the rules. And every house is different.

For many years, FEMA was the only game in town, and coverage was written based on very coarse “zones.” But within the past 10 years, many variables have been added to the calculation of rates — so much so that it’s much more individualized now.

Those factors include things like basement vs. crawlspace vs. slab, including how deep the crawlspace is.

Another has to do with where your utilities and furnace are located — and if those are elevated. The year the home was built is also taken into consideration, as well as its elevation, whether it’s a primary home, seasonal, or a rental. Even venting in the basement.

That’s just to name a few.

Add in the fact that multiple markets are now available for Private Market Flood insurance, meaning flood insurance not written through FEMA — this is a growing area and is quite likely to explode this September when the FEMA program is renewed by Congress.

In a show of bi-partisanship, there is already a lot of agreement on both sides of the political aisle as to what needs to change in the program, and both houses of congress realize that flood insurance is important.

It’s a challenge keeping up on all the changes, but for an insurance geek, it’s also fun.

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Or visit our web page at www.floodinsuranceny.com

Aaron Stein is the owner and president of Norton & Siegel Inc. in Babylon.