| ONLY Flood Insurance Protects against the Risk of | | | | Flood Insurance premiums are based upon the |
| Damage from Floods! | | | | elevation level of the building or home. A "Flood |
| Your business or home has a 26 percent chance of | | | | Elevation Certificate" is necessary before flood |
| being damaged by a flood during the course of a | | | | premiums can be determined. This certificate must be |
| 30-year loam, compared to a 9 percent chance of | | | | completed by a Licensed Land Surveyor or |
| damage or loss due to fire. Floods can occur almost | | | | Professional Engineer who is authorized by law to |
| anywhere at anytime - not just near water. Flooding is | | | | certify elevation information. Flood Elevation |
| the #1 natural disaster in the United States, and has | | | | Certificates cost between $200.00 and $1000.00 to |
| caused nearly $1.6 million in damages in Alaska and | | | | complete. Completed Flood Elevation certificates |
| $23.8 billion in the U.S. over the last 10 years. Flood | | | | should be kept on file with your local Community |
| coverage is sold separately from all other types of | | | | Planning Department as required by the National Flood |
| insurance coverage. | | | | Insurance Program (NFIP) regulation 44 CFR 60.3b1, |
| Protection from flood damage is available for | | | | FEMA 480 Publication, and the local flood reduction |
| protection from loss for commercial buildings, residential | | | | ordinance for the community. |
| buildings/homes, and renters' personal belongings. | | | | New Construction Information |
| Coverage is available up to $250,000 for single-family, | | | | The participating community will require an owner or |
| multi-family and other residential buildings and up to | | | | builder to obtain a "Floodplain Permit" before |
| $100,000 for contents coverage. Non-residential | | | | construction begins. This permit is issued by the |
| buildings, including small businesses, can acquire | | | | Community Planning office and requires property |
| coverage up to $500,000 for the building and $500,000 | | | | owners to build above the base flood elevation. Check |
| for contents. Coverage for damage from flood is not | | | | with the local Community Planning office to determine |
| covered in any other type of policy except a flood | | | | your flood zone. If your building site is located in a |
| insurance policy. | | | | Special Hazard Area, it is be wise to have a Licensed |
| Lender placed vs. Owner/Buyer placed Insurance | | | | Land Surveyor, Professional Engineer, or Registered |
| If you are applying for a building or home loan, the | | | | Architect come and set a temporary benchmark |
| lender may take the initiative to place insurance | | | | before construction begins. This will allow the builder to |
| coverage for you in order for you to meet the loan | | | | refer to the benchmark and build above the base flood |
| requirements. This is known as "Lender Placed" | | | | elevation (BFE). Additionally, it will help you determine |
| insurance coverage, and it often may be more geared | | | | how much fill material is needed to raise your structure |
| to protecting the lender's interests rather than your | | | | above the BFE which will result in lower Flood |
| interests. Additionally, lender placed coverage could | | | | Insurance costs. Remember: building above the BFE |
| cost you up to three to four times more than if you | | | | results in lower Flood Insurance premiums; building |
| placed the insurance yourself through an insurance | | | | below the BFE results in higher premiums. |
| agency/agent. Lenders will notify borrowers if Flood | | | | Lower Flood Insurance premiums are available to |
| Insurance is required as a condition of the loan | | | | property owners who build above the base flood |
| (National Flood Insurance Reform Act of 1994). | | | | elevation and do not have a basement or crawlspace. |
| Additionally, there is no 30 day waiting period for flood | | | | Buildings that have a basement or crawlspace requires |
| insurance purchased in connection to a mortgage loan. | | | | flood openings in the foundation. These are openings |
| Flood Insurance is mandatory if the lender is federally | | | | on all sides of the basement or crawlspace walls that |
| regulated and your property is located in a Special | | | | allow flood waters to flow freely through the space |
| Hazard Area. | | | | without building up hydrostatic pressure. |
| What is a Special Hazard Area? | | | | How do I go about getting Flood Insurance? |
| This is a designated area with the highest risk of | | | | Applying for Flood Insurance is easy! Flood Insurance is |
| flooding. Flood Insurance Rate Maps show high risk | | | | available through about 90 Insurance companies in |
| areas as Zones A, AE or V. However, nearly 25 | | | | more than 20,300 participating communities nationwide. |
| percent of all Flood claims come from medium or | | | | Your chosen Insurance Agent will require a Flood |
| low-risk flood areas which are listed as Zones B, C | | | | Elevation Certificate which will have the necessary |
| and X. Anyone can purchase Flood Insurance whether | | | | information to rate the policy. The premium charged |
| or not they are in a Special Hazard Area. If you | | | | for an accurately rated NFIP policy will be the same, |
| already have Flood Insurance, and are selling your | | | | regardless of from whom you purchase the policy. For |
| business or home, you can assign your current Flood | | | | more information on rates, premiums or maps contact |
| Insurance policy to the buyer at the time of closing. | | | | your local Independent Insurance Agent. |
| How are Flood Insurance Premiums Calculated? | | | | |