What ’ s Up With
The Business of Insurance
What ’ s Up With
Map & Rate Changes
By Jan Laman , Harbour Insurance Services
There is good news for Galveston County … so far . The new Map Changes for Galveston County have not posted yet . There will be changes . We just don ’ t know when .
You can map projected changes to your property by going to www . riskmap6 . com . Choose your state and county and then enter your address .
These changes have gone into effect for all of Harris County , so those of you in the Harris County area may be receiving notices from FEMA or your Mortgage Company that these changes have affected your property . These changes will affect the “ Base Flood Elevation ” measurement for your area and the “ Flood Zone ” for your property .
This process is very confusing and can cause panic . Yes , premiums are going up . Yes , you may now need to acquire an “ Elevation Certificate ” from a certified Engineer .
The good news ? YES , THERE IS GOOD NEWS . If you currently have a Flood Insurance Policy in place , your policy will be Grandfathered in its current Flood Zone . Your rates will still rise but they won ’ t be as high as they would be if you were to purchase a new policy .
If you currently have a “ Preferred Risk Flood Policy ” rated for Zone X , your policy will renew in the Preferred Risk Program for another year . You will see an increase in premium of up to 18 % at renewal .
When your policy moves to the Standard Rate you will have two options . You can leave it as it is ….. rated in Zone X . Or , you can hire a Certified Engineer to provide you with an Elevation Certificate for the updated AE Flood Zone . There is no way to know which will give you the best premium until the Elevation Certificate is complete . This certificate will give us specific measurements as to how far above or below the new Base Flood Elevation your home is . This could increase or decrease your annual premium depending on the findings .
Keep in mind that any Flood Policy may be transferred to a new owner . If you currently enjoy the lower rates of the Preferred Risk Policy in Zone X , don ’ t let it expire or cancel . This could be a great selling point if you ever list your property for sale . The new owner will be allowed to assume ownership of the Flood Insurance Policy you already have in place and potentially save a lot of money .
Now would a great time to purchase a Flood Insurance Policy if you have avoided it in the past . You may find that when the new maps go into effect your property will no longer be in Zone X and you will be required to purchase a more expensive policy .
All of that being said , this is a fluid process that has changed a few times in the last couple of years and may change again . Questions ? Contact your Insurance Agent today !
At the next renewal , you will still be rated in Zone X but your policy will move to the Standard Rated Policy Form . You will still be looking at another increase of up to 18 % at this renewal .
36 MOMENTUM / May 2017