New options for high NFIP premiums.Reducing NFIP Premiums by 50%
The NFIP is a Federally authorized program. Because of this, Congress sets the rules, and FEMA implements them. Congress has set rules that increase older, Pre-FIRM secondary homes at a rate of 25% a year.
The 25% annual increases only end when elevation certificate rates are applied, which in some cases can take years to become beneficial. Premiums, for a fully insured building, can be in the $8,000 to $15,000 range and continue to climb.
Challenge.
The NFIP has mandated that premiums for older secondary homes shall increase faster than other types of buildings due to their increased risk of claims. Many private flood companies’ sweet spot for placing business are these same older secondary homes. Even with basements, private flood has an appetite for these buildings with premiums less expensive than the NFIP. Due to innovations in flood risk modeling, private flood companies can predict their risk better than the NFIP and insure these structures at competitive rates.
Solution.
When an insured comes to Joe Flood for a solution to increasing premiums, frequently Joe finds a policy for these buildings in the private flood market. Private flood insurance can be a good fit. The NFIP does have penalties for leaving and later returning to the their program, but typically on older secondary homes, savings outweighs any possible penalty.
Results.
Joe Flood often saves insureds at least 50% on their premium. Even with a basement, if the private market will accept the risk, savings can be in the 20% to 50% range versus the NFIP. Joe Flood has access to proprietary private flood options that can help you stay insured when premiums become too expensive.
Our flood insurance was unreasonably high and our situation was extremely complicated as we began a large home renovation and expansion project. Joe worked with our architect and builder to execute a mitigation plan, while reducing our insurance premium by about 85%. In addition to being knowledgeable and effective, he was great to work with; he was professional, responsive, and a good guy.
