The 2013 hurricane season began on June 1 and will officially end on November 30. Ron Hershco believes now is the best time to make sure your properties are covered with you current flood insurance policy.
The Wall Street Journal recently published an article about new FEMA evaluations on how much flood insurance should be attained by multiple mortgage holders:
“The Federal Emergency Management Administration is currently re-evaluating flood maps, requiring more jumbo-mortgage holders with homes in high-hazard areas to buy flood insurance. Also, changes to federal law enacted in July are expected to jack up premiums.
Even though flood coverage is only mandated for government-backed mortgages, or conforming loans, lenders generally keep the same requirements for jumbo borrowers who live in high-hazard (Zone A) areas. These are defined by FEMA as having a 26% chance of flooding during the lifespan of a 30-year mortgage.
“The pool of people required to pay flood insurance has dramatically increased,” said Peter Grabel, a senior mortgage loan originator at Stamford, Conn.-based Luxury Mortgage.
Both Bank of America and Wells Fargo require jumbo-mortgage borrowers to obtain the $250,000 maximum coverage available for residential properties under the National Flood Insurance Program (NFIP), which is an arm of FEMA. Homeowners can purchase a second NFIP personal-property policy that covers up to $100,000 to replace a home’s contents.
Homeowners also have the option to buy what is called “excess” flood insurance from private insurers to cover repair or replacement costs above $250,000.”
Where you or your family affected by Hurricane Sandy? Did you have flood insurance before last year’s hurricanes? Do you plan on getting it now?