Flood insurance “Full Risk” rates can be a killer, especially if your first floor of living space is at an elevation subject to floods as now defined by “Hazus.” Hazus is a program/analysis that is far more difficult to define and understand than the FEMA “FIRM maps.” But then “bless their hearts,” the new “Full Risk” rates can only go up at 18% a year to a maximum of $15,000, all for coverage limited to $250,000. Given today’s costs and market values, $25000 will not cover all of the cost of building most homes built in flood zones on the US coats. The rest of the cost of damage that is not covered by the national Flood Insurance Program (NFIP) can be covered by private carriers. However, getting a policy for the “excess risk,” is typically far more expensive than NFIP rates even for very low risk “rock solid” homes/businesses built with living space well above the 100-year flood. And impossible to obtain for high-risk cases with floor space in the flood. Heck, Flood Rates are nothing compared to wind coverage. Try pricing wind coverage, even for a rock-solid home, built out of the flood zones, and 5 miles from the coast. Ultimately it is true, nearly all of us have some risk; earthquake, tornado, hail, wildfire, mud slides, nor-easters, hurricanes, the aftermath of major hurricanes hitting Illinois, Indiana etc. etc….
What to do? Pay the price, build as if you have no insurance, move? No easy choices if one likes where they live.
JJ should know. All of us who were here for Katrina and the umpteen hurricanes since should know.
Flood insurance “Full Risk” rates can be a killer, especially if your first floor of living space is at an elevation subject to floods as now defined by “Hazus.” Hazus is a program/analysis that is far more difficult to define and understand than the FEMA “FIRM maps.” But then “bless their hearts,” the new “Full Risk” rates can only go up at 18% a year to a maximum of $15,000, all for coverage limited to $250,000. Given today’s costs and market values, $25000 will not cover all of the cost of building most homes built in flood zones on the US coats. The rest of the cost of damage that is not covered by the national Flood Insurance Program (NFIP) can be covered by private carriers. However, getting a policy for the “excess risk,” is typically far more expensive than NFIP rates even for very low risk “rock solid” homes/businesses built with living space well above the 100-year flood. And impossible to obtain for high-risk cases with floor space in the flood. Heck, Flood Rates are nothing compared to wind coverage. Try pricing wind coverage, even for a rock-solid home, built out of the flood zones, and 5 miles from the coast. Ultimately it is true, nearly all of us have some risk; earthquake, tornado, hail, wildfire, mud slides, nor-easters, hurricanes, the aftermath of major hurricanes hitting Illinois, Indiana etc. etc….
What to do? Pay the price, build as if you have no insurance, move? No easy choices if one likes where they live.
JJ should know. All of us who were here for Katrina and the umpteen hurricanes since should know.