Tag: Flood

Should I buy a home in a flood zone?

There are a lot of things to consider when buying a home. Flood insurance should be one of them. First off… EVERY home is in a flood zone. Some zones are higher risk than others. If you are in a Special Flood Hazard Area, you would be required to purchase flood insurance by your mortgage company. Even if you do not have a mortgage or your bank does not require you to buy flood insurance, you should consider the possible risk. If you are in a low-lying area, near a stream or river or right on the ocean, you should think about purchasing flood insurance. Remember, 20-25% of all flood claims are not in a special flood hazard area and the average flood claim is over $50,000!

Some considerations are what is the actual risk of the home flooding? How near to the water is the home? What is the elevation of the home? Does it have a full basement, crawlspace, slab or are you built up on piers or columns? The construction of your home has a big impact on flood rates. We can advise you as to which flood zone your property is in. We have software that can tell us exactly what the elevation of the house is and what the potential of your home sustaining a flood is.

You should inquire with the seller or the seller’s realtor if the property has been flooded in the past. This will give you some idea as to whether to buy the house. If it is in a low, flood-prone area, you may want to think twice about it. Sure, you can get flood insurance, but do you really want a house that floods frequently?

How will it affect my resale value? If you are looking at a home in a Special Flood Hazard Area, ask the seller or the seller’s realtor if they currently have a flood policy on the property. If they do, is the policy grandfathered into a lower flood zone? If it is, you may want to consider keeping their policy. All National Flood Insurance Program (NFIP) policies are transferable to a new owner. Even though the policy is grandfathered, you may still be able to get a lower premium in the private market. If you choose to purchase a private market policy to protect your home, it is NOT transferable like an NFIP policy. But from a resale standpoint, any prospective buyer will want to see how much a flood insurance policy is going to cost. Even though they are not transferable, we can write a new policy for a buyer for similar pricing.

Another important thing to ask is if the seller has an Elevation Certificate on the property. Chances are if the property was built after 1976, there is an Elevation Certificate on file. If the seller can’t find a copy, the building department may have a copy on record from when the property was built. If the property was built after 1976, in order to get an NFIP flood quote, they would require an Elevation Certificate to get a quote. This is NOT the case in the Private Market! We do NOT need an elevation certificate to quote a flood policy in the private market. HOWEVER, an elevation certificate could help to lower the rate.

There are also many things you can do to mitigate a flood hazard. Does the property have a sea wall? Is there anything between you and the ocean to slow or stop flood waters? Does the home have flood vents or break-away walls? Where are the utility services located? Are they in the basement, crawlspace or on the first floor? Are they elevated up? All of this information can be found on the elevation certificate.

Typical Flood Vent

Know what you are getting yourself into BEFORE you make an offer on a home. You will find that the premiums in the private market are 25-75% less than NFIP! Call us to get a sample homeowners and flood insurance quote.


Give us a call at: (508) 997-3321 or visit our website at:




What Private Market Flood Insurance carriers do we use?

We currently use over 15 different PMF carriers and markets.  We have painstakingly searched the marketplace for the best carriers available. We are constantly adding new markets.

Most of them are surplus lines carriers. A surplus lines insurance carrier protects against a financial risk that is too high for a regular insurance company. Surplus lines carriers are generally not licensed in the state. Meaning, they do not partake in the state’s guarantee fund.  Basically, if an insurance carrier goes “belly-up”, the state has a guarantee fund. Surplus lines carriers are not in this fund.  That said, we choose carriers that are financially strong and have at least an “A” rating by AM Best, Moody’s and Standard & Poor’s.

Several of our markets use Lloyds of London. The technical term for Lloyds is “Certain Underwriters at Lloyds of London”. There are hundreds if not thousands of Lloyds syndicates. In lay terms, it is a group of underwriters agreeing to take a portion of a risk. There can be one underwriter or several dozen that enjoin together to accept a risk. So, we have probably a half dozen different Lloyds syndicates that we work with. So, if you are in Lloyds now, chances are that our rate would be very different than yours.  We also work with a few admitted carriers.

Give us a call at: (508) 997-3321 or visit our website at: https://coastalinsurancema.com/get-a-quote-flood-insurance/

Pete & Lisa Humphrey Covil and Coleman Insurance, New Bedford

Can I cancel a Private Market Flood Insurance policy and go back to NFIP?

It is actually much easier to cancel a Private Market Flood Insurance (PMF) policy than an National Flood Insurance Program (NFIP) policy. There are a lot of restrictions to cancel a NFIP policy mid-term. Your PMF policy has a 25% minimum earned clause. It basically means that they keep 25% of the premium if you cancel mid-term. So, you cannot cancel until after 3 months and expect a return premium. After 3 months, you can cancel for a pro-rata return premium. They do keep any fees associated with writing the policy, but you do get a pro-rated return of the premium.

Give us a call at: (508) 997-3321 or visit our website at: https://coastalinsurancema.com/get-a-quote-flood-insurance/


Is a Private Market Flood Insurance policy the same as NFIP?

Private Market Flood Insurance policies are as good if not better than their NFIP cousins.

The government has mandated that all Private Market Flood (PMF) Insurance policies are exactly the same as National Flood Insurance Program (NFIP) policies. In fact, PMF policies are a lot better. You can purchase up to $2,000,000 on the building or $500,000 in contents. The maximum amount of dwelling coverage you can purchase on an NFIP policy is only $250,000 and you can only purchase $100,000 of Contents coverage.  You have several deductible choices on a PMF policy. $1,000  to $100,000.

You can purchase coverage for “Loss of Use”/ Temporary Living Expense. If you have a flood and have to move out of your home for a few months while rebuilding, you can have some coverage to live in a hotel. Other options include Pool Repair and Refill, Basement Contents, Unattached Structures and Replacement Cost Contents. PMF has shorter waiting periods too. An NFIP policy has a 30 day wait, where a PMF policy typically has a 10 day wait. The waiting period is waived in both instances for a loan closing. This protects insurance companies from people running out and buying flood insurance the day before a hurricane is predicted to hit.

Give us a call at (508) 997-3321 or find us on the web at: https://coastalinsurancema.com/get-a-quote-flood-insurance/


Will my Bank accept Private Market Flood Insurance?

The Ruling

Private Market Flood insurance can save you a ton of money, but will your bank/mortgage company accept it? The Biggert-Waters Flood Insurance Reform Act of 2012 amended the Federal flood insurance legislation to require the FDIC, the National Credit Union Administration, The Farm Credit Administration, The Federal Reserve and the Office of Comptroller of Currency to issue a final ruling.  As of July 1, 2019, they have come together and have mandated that all private banks accept insurance policies issued by private insurers, as long as a private insurers policy meets the statutory definition of Private Flood Insurance.  Your bank may request proof in writing that the policy is in compliance with the statute.

We have learned that some government loans such as an FHA loan will NOT accept Private Market Flood. They still require that flood insurance be with a National Flood Insurance Program (NFIP) insurer, backed by FEMA. Hopefully, the government will amend this in the near future so homeowners with an FHA loan can save on their flood insurance as well.

It is best to check with your bank to make sure that they accept a Private Market Flood policy.

Give us a call at: (508) 997-3321 or Start your Quote Here