A few more flood insurance questions are discussed below.
How much will flood insurance cost?
Flood insurance premiums vary, depending upon the date the building was constructed and the degree of risk of flooding. To get a quote, please contact your insurance agent. If you don’t have an agent, you can contact the National Flood Insurance Program for a referral at 1-800-427-4661.
When is the best time to buy flood insurance coverage?
Now. There is a 30-day waiting period for flood insurance coverage to become effective. If flood insurance is purchased in connection with a mortgage loan, there is no waiting period.
What is a Special Flood Hazard Area (SFHA)?
These are the areas with the highest risk for flooding, shown on the Flood Insurance Rate Maps as Zones A or V.
Over a 30-year mortgage, homes in these zones have a 26% chance of being flooded.
How will I know if my home is in an SFHA?
Check with your local community or to order copies of maps of your area, call 1-800-358-9616.
Lenders will notify borrowers if flood insurance is required as a condition of the mortgage loan (National Flood Insurance Reform Act of 1994).
For more information about the National Flood Insurance Program and flood insurance, visit FloodSmat.gov or contact your insurance company or agent.
Disclaimer: The discussion above is based on FEMA’s publication titled Questions & Answers About Flood Insurance for Real Estate Professionals.
Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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