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Flooded NeighborhoodIf you're thinking about buying a home, there is an extensive list of to do's. One of those to do items should be "Flood Confirmation". When you are considering making an offer on a home, you will want to confirm if the home is in a low or high risk flood zone. If the home is in a high risk flood zone, the mortgage company will require you to carry flood insurance.

The first step is connecting with an insurance professional. You will want your insurance professional to pull the flood zone determination. This determination will confirm what zone the home is in, and your insurance professional can report back to you and/or your realtor about the findings.

If the home is in a low risk or preferred risk zone (Often referred to as "Zone X"), you will not be required to carry flood insurance by the mortgage company. However, this doesn't mean the home is not at risk of flooding; it simply means that the risk is low. If you want the coverage, it is still available for low risk zones — the cost is typically $350-$475 annually for a primary residence. (Note: When obtaining flood insurance for non-primary residences, there will be additional fees.)

In the case where the flood determination shows the home is in a high risk flood zone, you will need to obtain an Elevation Certificate. This document is used to determine how low or how high the home sits in relation to the base flood area. The higher the structure sits above the base flood area, the less the cost will be; the lower the home sits, the more the flood insurance premium will be.

It's important to understand that FEMA is currently the underwriter of flood insurance. If you were to obtain multiple quotes, regardless of the company brand, the price would be the same if quoted correctly, and the coverages/deductibles would match. FEMA sets the rules, guidelines, and pricing for flood insurance. It's important to know that FEMA will only offer coverage up to $250,000 in coverage for the dwelling. If your mortgage company requires additional coverage, one of our agents can help connect you with a company that offers Excess Flood Coverage through a private market.

How To Obtain An Elevation Certificate

This can be perceived as a hassle, but it's what will help you secure the best pricing; more importantly this document will help you make an informed decision. Sometimes, a seller may have a copy of this document that they can provide to your realtor. If not, one can be purchased for $350-$450 by a surveyor — your realtor or our agency can help connect you with a surveyor. Once the surveyor has taken pictures of the home and taken the measurements, he/she will prepare the Elevation Certificate, which he/she will send to you and your realtor. From there, you will provide the certificate to your insurance professional so the flood insurance quote/proposal can be prepared. At that time, your insurance professional will go over your coverage, deductible, and pricing options.

Bottom Line: When buying a home, you need to know if Flood Insurance will be required. Talk with an insurance professional who knows how to negotiate this complex process.

Protect your home. Call Raymond Preston & Reed, LLC at (615) 866-2728 for more information on Brentwood TN flood insurance.
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Brentwood, TN 37027
Phone: 615.866.2728
Email: info@rprinsurance.com
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