This is an interesting article about the effect that the new FEMA flood maps may have on your property and your annual insurance bill. The last bit of advice about getting an elevation certificate is excellent. Thanks to the original author for allowing me to re-blog it.
I received two calls today from my blogs about FEMA from local residents! It is a double edged sword since I am reporting and explaining bad news. August 16, 2011 the new FEMA flood maps became official.
As of today, Wells Fargo customers are receiving their Flood Certification Notices. Others may be too. The new maps are now replacing the old and the perimeters are much, much different. Homes that once showed in the "safe zone" or the "C zone" are now showing in the "A zone". What does this mean? This means that their property has just been bumped into the "YOU HAVE TO PAY EXTRA FOR FLOOD INSURANCE" zone. All maps have been re-zoned to include many more properties and acres in the 100 year flood zone.
A nice local gentleman said, "hi, I came across your blog on FEMA and the new Flood Zones and I have some questions. I received a notice from my lender, Wells Fargo today stating that I am in the "A zone". I read your blog where it said you were getting quotes for as much as $20,000 per year for properties that are in this zone". I explained that I managed to find a man that could cover the home for as little as $569.00 per year with a request for grandfathering.
Problem is, the gentleman I spoke to today purchased his property in 2009 and I am not certain how long you must be in your property before you can become grandfathered.
Oh "sigh". I was afraid of this. All chaos is about to break loose.
This is going to cause a great many FORECLOSURES AND SHORT SALES. People are not going to be able to afford this kind of money on or near the water.
For all new closings: A lender must provide a notice of SFHA (special flood hazard area) to a purchaser within ten days of the closing. If the borrower does not comply by purchasing the insurance within 45 days the Federal Government will require the lender to force and choose insurance for the homeowner. This price on the insurance can be exorbitant!
ADVICE: If you feel your property is above the water level of the dam then I recommend a survey. It is called an Elevation Certificate and runs around $350.00 in this area. Most surveyors are equipped with laser equipment that can handle the job. Once you receive your survey with the elevation, photos, legal description you will turn this in to FEMA. If it shows a mistake then you will be re-zoned. This could help on your price.
Be sure and check with your insurance provider and then check with the FEMA certified insurance providers for separate quotes. The quotes can vary by a huge amount of money. My personal recommendation is:
Gary BlomeWWW.EFLOODQUOTE.COMPH 800-901-1971Fax 800-456-9830
I spent days looking for him so feel free to save yourself a lot of time and trouble and give Gary a call.Good luck to all.This is another change that will be reshaping the entire landscape of our business.
Brooks Prime Properties, LLC
Waterfront Real Estate Specialists
Lake Conroe Real Estate, Lake Livingston Real Estate
Your Waterfront Realtor® Deb Brooks