Thank you to Jeff Halseth for this update. Jeff's contact information is available at the end of the article.
- New Rates for Pre-FIRM Single Family Homes -
In response to the Flood Insurance Update I provided recently, announcing that FEMA had issued new Rate Tables for newly purchased Pre-FIRM properties, I received many questions.
Most people wanted to know what the new rates are for "A" Zones, whether the rates are the same for both Primary & Secondary homes, whether they are the same regardless of the elevation, and whether the rates are the same whether built on Slab or Elevated on a Crawlspace.
Below I have listed the new Pre-FIRM rates effective June 1, 2014 for single family Primary and Secondary homes located in A Zones. The rates are based on a $2,000/$2000 Deductible, which is now the lowest Deductible option for Pre-FIRM homes. Increasing the Deductible to $5,000/$5,000 reduces the rates approximately 19%.
The new rate for a Pre-FIRM Primary residence in an A Zone is: $2,711.
The new rate for a Pre-FIRM Secondary residence in an A Zone is: $3,437.
The rates are the same regardless of a home's elevation, so no Elevation Certificate is needed. The rates are the same whether it is built on slab or elevated on a crawlspace. The rates for Second homes are approximately 26% higher than for Primary homes.
Note - For a Pre-FIRM home that is elevated on a crawlspace with an attached garage that does not have flood vents/openings, the cost is higher.
Pre-FIRM properties may use elevation rating based on an elevation certificate, if it happens to be more favorable to the insured. Also, a new buyer can assume the seller's existing flood policy at the same rate. If the rate the seller is paying is less than the cost of a new policy, assuming the sellers policy is a viable alternative.
If you have any questions, feel free to contact me.
Coastal Plains Insurance
15 Bow Circle
Hilton Head Island, SC 29928