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