Insurance Questions
Letter of Map Revision for Sacramento, CA
- Can you purchase a flood insurance policy
- How are flood insurance premium rates calculated?
- How much does flood insurance cost?
- What is the maximum structural coverage
- What is the maximum contents coverage available?
- How do I purchase a flood insurance policy?
- What are the "grandfathering" rules of the National Flood Insurance Program?
- Can County residents qualify for "grandfathered" insurance rates if they purchase flood insurance now?
Can you purchase a flood insurance policy
You can purchase a flood insurance policy at a lower rate as long as the policy is purchased prior to the effective date of the new map. Two methods are available:
1. You can purchase a Preferred Risk Policy. This policy provides building and contents coverage at low rates for buildings that are located outside the floodplains. At the time of renewal, Option 2 (below) can be used.
2. You can purchase a Standard Flood Insurance Policy based on the flood zone that was in effect prior to the effective date of the map. This applies for as long as the policy is maintained without an interruption of coverage.
How are flood insurance premium rates calculated?
A number of factors are considered in determining premium rates for flood insurance coverage. They include the amount of coverage purchased; location, age, occupancy, and design of the building to be insured; and, for buildings in the floodplain, the elevation of the building in relation to the base (1-percent-annual-chance) flood elevation (BFE).
How much does flood insurance cost?
The cost of flood insurance will vary based on the factors discussed above. Below are two examples for $100,000 worth of coverage on a dwelling. Contents coverage is also available at reasonable rates.
EXAMPLE 1
The structure was built before the community entered the National Flood Insurance Program (NFIP) in May 1970.
Insurance purchased before February, 18, 2005:
- $221.00 for a Preferred Risk Policy - THIS YEAR ONLY
- $326.00 for a Standard Flood Insurance Policy with a Zone C rating (flood zone prior to the effective date of the map). This rate applies only for as long as the policy is maintained without an interruption of coverage.
Insurance purchased on or after February, 18, 2005:
- Not eligible for a Preferred Risk Policy
- $595.00 for a Standard Flood Insurance Policy with a Zone AE rating (the flood zone in effect on the date of purchase)
EXAMPLE 2
The structure was built after the community entered the NFIP in May 1970.
Insurance Purchased before February, 18, 2005:
- $221.00 for a Preferred Risk Policy (PRP) - THIS YEAR ONLY
- $326.00 for a Standard Flood Insurance Policy with a Zone C rating (the flood zone prior to the effective date of the map)
Insurance Purchased on or after February, 18, 2005:
- Not eligible for a Preferred Risk Policy
- $326.00 for a Standard Flood Insurance Policy with a Zone C rating (flood zone in effect on the date of construction)
What is the maximum structural coverage
The maximum structural coverage available is $250,000 for residential structures and $500,000 for commercial structures.
What is the maximum contents coverage available?
The maximum contents coverage available is $100,000 for residential structures and $500,000 for commercial structures.
How do I purchase a flood insurance policy?
To purchase a flood insurance policy, you may:
- Contact your local insurance agent;
- Call the FEMA toll-free number, 1-800-427-4661, to request the name of an insurance agent in your area who sells flood insurance; or
- Visit our website and click on "Write Your Own companies" for a list of insurance companies that offer flood insurance in your State.
What are the "grandfathering" rules of the National Flood Insurance Program?
To recognize policyholders who have either built in compliance with the flood map and/or remained loyal customers of the National Flood Insurance Program by maintaining continuous coverage, the Federal Insurance Administration has "grandfather" rules. These rules allow such policyholders to benefit in the rating for that building. For such buildings, the insured has the option of using the current rating criteria for that property or having the premium rate determined by using the Base Flood Elevation and/or flood zone on the old map in effect when the building was originally constructed (for those built in compliance) or when coverage was first obtained (for those with continuous coverage).
Can County residents qualify for "grandfathered" insurance rates if they purchase flood insurance now?
- If owners of structures built before March 17, 1972, purchased flood insurance before the flood map became effective on February 18, 2005, the National Flood Insurance Program "grandfathering" rules would apply, as long as continuous coverage is maintained and the policy was rated correctly against the flood hazard map that was in effect at the time of construction.
- For owners of structures built in compliance with floodplain management regulations in effect since March 17, 1972, and before the flood map became effective on February 18, 2005, "grandfathering" rules allow the use, for flood insurance rating purposes, of the flood map in effect at the time of construction.
- Insurance premiums would be determined based on the Program status of the County at the time the structure was built, in addition to several other factors, such as the amount of coverage purchased and the location, age, occupancy, and design of the affected building.
- If a homeowner does not maintain continuous coverage, the flood insurance premium rate charged when a policy is reissued would be based on the flood map in effect at the time of reissuance.
Last Modified: Friday, 12-Oct-2007 12:58:46 EDT
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