Flood Insurance
Posted on | April 29, 2008 | No Comments
Yesterday I was on the phone with the Allstate agent that my parents have their insurance policy with. The buyer for my parents house was in the process of gathering quotes for his new insurance policies. The home is in a flood zone that requires the homeowner to have flood insurance. Flood insurance is through FEMA and the price is pretty much set, depending on building specifics. It’s not like you get a better quote if you have good credit, etc.
The flood insurance coverage through FEMA is up to 250K, but you can get additional private coverage. To get a flood insurance policy, you need the elevation certificate, done by a surveyor, that tells what the elevation is (above sea level) of the first main floor of the building. If you are in an area that requires flood insurance, like Sullivans Island, Isle of Palms, much of Mt. Pleasant, and much of downtown Charleston, you will need a copy of your elevation certificate. A good place to call is the insurance agency that the seller has their policy with. They would have a copy on file, most likely. Keep this in mind when you purchase real estate in Charleston, because it very well may come up. Always call the company that the seller has insurance with, to get a quote, and see if you can transfer the existing flood policy to you. If you are comfortable with the policy, it can often be a big savings to transfer it into your name. Sometimes, however, flood zones may have changed, and this may not work.
Also, some mortgage companies may require that a full year of flood insurance be paid at closing, even if the premium is being prorated. This could potentially make you need to get a new policy written, and it may not come up until closing, so make sure you check with your loan officer well in advance if you want to transfer and prorate the flood policy.
I also must disclaim that I am not an insurance agent, and am largely just repeating what insurance agents have told me in the past. It’s always best to contact several insurance agents to get quotes and get a thorough explanation of everything. I just want to give an overview of the things you need to be aware of. For more info, please call John Cosgrove, with Nationwide, 843-352-0150, or cosgroj2@nationwide.com. Also, you can check www.floodsmart.gov for some great info on flood insurance.
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