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CHAPTER 8 FLOOD INSURANCE

CHAPTER 8 FLOOD INSURANCE. Insurance Quiz - Flood Risk Probabilities. There is a % chance that a house will catch fire during the life of a 30-year mortgage. 5.

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CHAPTER 8 FLOOD INSURANCE

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  1. CHAPTER 8FLOOD INSURANCE

  2. Insurance Quiz - Flood Risk Probabilities • There is a % chance that a house will catch fire during the life of a 30-year mortgage. 5 • For a house located in a floodplain, there is a % chance that it will be inundated by a 100-year flood during the life of a 30-year mortgage…… 26 • Over a 50 year period, the probability increases to %. 39

  3. Who Can Buy Flood Insurance? • Community Participation • All Zones

  4. Community Participation • How does a community participate? • Application to FEMA • Meet minimum floodplain management requirements • 19,000+ communities participating • What does non-participation mean? • No flood insurance available • No disaster assistance • No federal mortgages in SFHA

  5. Administrative Structure of the NFIP • Emergency Phase • Regular Phase

  6. Eligible Structures • At least two rigid exterior walls and a roof • Principally above ground • Manufactured (mobile) home in SFHA, anchored to resist flotation, collapse or lateral movement.

  7. Pre-FIRM and Post-FIRM • The terms of Pre and Post FIRM are important to both FPM and rating buildings for insurance.

  8. Comparison of Flood Insurance Existing Pre-FIRM House 1 FT ABOVE BFE 1 FT BELOW BFE 10 FT BELOW BFE $634/YR VS $634/YR VS $634/YR ($19,020) ($19,020) ($19,020) BASED ON $60,000 BLDG & $15,000 CONTENTS COVERAGE

  9. Comparison of Flood Insurance Existing POST-FIRM House 1 FT ABOVE BFE 1 FT BELOW BFE 10 FT BELOW BFE $220/YR VS $930/YR VS $12,491/YR ($6,600) ($27,900) ($374,730) BASED ON $60,000 BLDG & $15,000 CONTENTS COVERAGE

  10. Flood Insurance Costs for 30-Year Loan +1 FT Pre-FIRM House -1 FT -10 FT $634/YR VS $634/YR VS $634/YR ($19,020) ($19,020) ($19,020) +1 FT Post-FIRM House -1 FT -10 FT $220/YR VS $930/YR VS $12,491/YR($6,600) ($27,900) ($374,730)

  11. EXPLODING THE MYTHS: • Flood Insurance does not cover basements. • You can only buy flood insurance in the floodplain. • Federal disaster assistance will cover your damages. • You can’t buy flood insurance during a flood. • Flood Insurance is only available from the government. “We Can’t Replace Your Memories ... But We Can Help You Build New Ones”

  12. Community Rating System • Another way to reduce the cost of a flood policy!

  13. Incentive CRS provides an incentive for communities to initiate new flood protection activities.

  14. Class 9 8 7 6 5 4 3 2 1 Discount 5% 10% 15% 20% 25% 30% 35% 40% 45% CRS Premium Discounts • Points • 500-999 • 1000-1499 • 1500-1999 • 2000-2499 • 2500-2999 • 3000-3499 • 3500-3999 • 4000-4499 • 4500+

  15. Flood Insurance Questions? • Specific insurance questions, contact your insurance agent or call 1-800-427-4661 • www.floodsmart.gov

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