Elevation Certificates Required

[1manshow]

Anyone else facing this monster? Now that pre-firm construction buildings must have an elevation cert. to be renewed for flood insurance. We're seeing 30%-200% increases on rates for renewing clients...plus the $500-900 cost of getting the certificate.

Had a client tell me that after telling their leinholder "No"..they were informed that the forced placed coverage included a flood peril. Turns out it saved the client $2,300/year by taking forced placed versus a flood policy.

 

[benwrigh]

Anyone else facing this monster? Now that pre-firm construction buildings must have an elevation cert. to be renewed for flood insurance. We're seeing 30%-200% increases on rates for renewing clients...plus the $500-900 cost of getting the certificate.

Had a client tell me that after telling their leinholder "No"..they were informed that the forced placed coverage included a flood peril. Turns out it saved the client $2,300/year by taking forced placed versus a flood policy.

Have you checked out any private flood insurance companies? We received a mailer from catcoverage.com. They do not require elevation certs.

We didn't end up doing anything because we don't write enough flood to mess with it.

 

[Milkman1265]

all my private flood people want elevation certificate too, cost 850 out here to get a surveyor to do it....

 

[insurance1822]

As part of the biggert waters reform as of 10-1-2013 all properties in hazardous flood zones require elevation certificates for coverage. The NFIP is trying to more accurately price risks so that guy within X number of linear feet from a flood plain yet many feet above it will have a better premium and the moron building below the base flood elevation will rightfully pay a ton...

The NFIP is no longer subsidizing premiums either so some flood insurance prices will be unaffordable and it's going to cause a bunch of property owners to literally not be able to sell their house because the flood insurance will be more then the mortgage (in fact, that just happened to a client.)

In addition many of the companies underwriters aren't up to speed with pricing policies and we're seeing big fluctuations in price (which shouldn't be the case.)

NFIP at $25,000,000,000 deficit and now it's time to pay the piper.

 

[1manshow]

thanks for the info. a carrier with no requirements would be a nice edge...but I can't see how they get around the legislation. All of our "write your own" companies are also requiring the certs.

 

[blue_wynd]

As part of the biggert waters reform as of 10-1-2013 all properties in hazardous flood zones require elevation certificates for coverage. The NFIP is trying to more accurately price risks so that guy within X number of linear feet from a flood plain yet many feet above it will have a better premium and the moron building below the base flood elevation will rightfully pay a ton...

The NFIP is no longer subsidizing premiums either so some flood insurance prices will be unaffordable and it's going to cause a bunch of property owners to literally not be able to sell their house because the flood insurance will be more then the mortgage (in fact, that just happened to a client.)

In addition many of the companies underwriters aren't up to speed with pricing policies and we're seeing big fluctuations in price (which shouldn't be the case.)

NFIP at $25,000,000,000 deficit and now it's time to pay the piper.

You can make this into a nice info blog piece on how new flood insurance rules can effect buying a house. Tell your clients to ask about flood zones before buying that house or atleast pass the info to your real estate agent network to create value for them.

 

[benwrigh]

thanks for the info. a carrier with no requirements would be a nice edge...but I can't see how they get around the legislation. All of our "write your own" companies are also requiring the certs.

My info came from there ad. Perhaps it said no cert to quote...

 

[Aram Fingal]

Had a client tell me that after telling their leinholder "No"..they were informed that the forced placed coverage included a flood peril. Turns out it saved the client $2,300/year by taking forced placed versus a flood policy.

Had a similar situation where the mortgage company required the flood be increased to match the homeowners which adjusts for inflation every year. Turned out that the additional couple of thousand coverage was cheaper force placed (they're in a tsunami risk area). I advised them to let the bank make up the difference.

HOWEVER, remember that force placed insurance only covers the bank's interest in the property. So if there is a loss, and you only owe $30,000 on your $200,000 house, that's all the coverage is going to pay. You would be on your for the rest.

 

[Guest]

I recommend teaming up with one or two guys who can do the certificate and agree to filter all your business to them..... I have gotten the cost down to $250-$300. I do about 2-5 flood policies a week.

 

[benwrigh]

I just spoke to someone from catcoverage.com (This is the NCIP underwritten by Lloyd's, program is administered by Poultan). They stated that they never require elevation certficates.