Note for insurance agents: The Zoning and Building Department can do flood determinations and has copies of FEMA Elevation Certificates on many buildings built in the floodplain. The latest information on flood insurance can be obtained from Floodsmart. The cost varies from nothing to about $75 for a rider on your homeowner's insurance premium. Most exclude damage from surface flooding that would be covered by an NFIP policy. Each company has different amounts of coverage, exclusions, deductibles, and arrangements. Several insurance companies have sump pump failure or sewer backup coverage that can be added to a homeowner's insurance policy. Contact your insurance agent for more information on rates and coverage. There is a 30-day waiting period before National Flood Insurance coverage takes effect. Federal agencies and regulators, including government-sponsored enterprises, such as Freddie Mac and Fannie Mae, may have stricter requirements.ĭon't wait for the next flood to buy insurance protection. The maximum amount of coverage available for a single-family residence is $250,000 and for non-residential (commercial) buildings is $500,000. Under federal regulations, the required coverage must equal the amount of the loan (excluding appraised value of the land) or the maximum amount of insurance available from the NFIP, whichever is less. Up to 25% of all NFIP flood losses arise from outside SFHAs (B, C, and X Zones). However, lenders, on their own initiative, may require the purchase of flood insurance even if a building is located outside an SFHA. Even though a portion of real property on which a building is located may lie within an SFHA, the purchase and notification requirements do not apply unless the building itself, or some part of the building, is in the SFHA. If the building is in an SFHA, the federal agency or lender is required by law to provide written notification to the borrower that flood insurance is mandatory as a condition of the loan. When making, increasing, renewing, or extending any type of federally backed loan, lenders are required to conduct a flood zone determination using the most current FEMA FIRM to determine if any part of the building is located in an SFHA. It further applies to all loans purchased by Fannie Mae or Freddie Mac in the secondary mortgage market.įederal financial assistance programs affected by the laws include loans and grants from agencies such as the Department of Veterans Affairs, Farmers Home Administration, Federal Housing Administration, Small Business Administration, and FEMA disaster assistance. The mandatory purchase requirement also applies to secured loans from such financial institutions as commercial lenders, savings and loan associations, savings banks, and credit unions that are regulated, supervised, or insured by federal agencies, such as the Federal Reserve, the Federal Deposit Insurance Corporation, the Comptroller of Currency, the Farm Credit Administration, the Office of Thrift Supervision, and the National Credit Union Administration. An SFHA is defined as any A or V flood zone on a Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map (FIRM). Pursuant to the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, the purchase of flood insurance is mandatory for all federal or federally-related financial assistance for the acquisition and/or construction of buildings in Special Flood Hazard Areas (SFHAs). To find a local insurance agent that writes flood insurance in your area visit FloodSmart. Property owners can purchase building and contents coverage from any local property and casualty insurance agent. The NFIP insures most walled and roofed buildings that are principally above ground on a permanent foundation, including mobile homes, and buildings in the course of construction. This community participates in the NFIP, making federally-backed flood insurance available to its property owners. The National Flood Insurance Program (NFIP) is a federal program enabling property owners in participating communities to purchase flood insurance on eligible buildings and contents, whether they are in or out of a floodplain. Our Frequently Asked Flood Questions section answers some more specific questions about the National Flood Insurance Program. Any agent can sell a policy and all agents must charge the same rates. Local insurance agents can sell a flood insurance policy under rules and rates set by the Federal Emergency Management Agency (FEMA). Rock Island County participates in the National Flood Insurance Program. Homeowner's insurance policies do not cover a property for flood damage. Remember, even if the last storm or flood missed you or you have done something to protect your home from water, the next flood could be worse.
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