FEMA Flood Insurance “Risk Rating 2.0”

IMPORTANT INSURANCE TIPS

The FEMA National Flood Insurance Program has recently implemented a new flood insurance rating system. This will enable FEMA to charge rates that are equitable, easier to understand and better reflect a specific property’s flood risk.


Flood insurance rates will not be based on the following set of factors for each individual home:

1. The home’s replacement or re-construction cost in today’s market.

2. The susceptibility of flooding from a water source such as oceans, rivers, bays and heavy rainfall.

3. Proximity to a potential flood source.

4. The flood zone and elevation of the home.

5. How the home is used by the owner (primary or secondary residence).


Each of these factors differ from one home to the next, so it’s difficult to predict how the rate will change for any one residence. While we expect some flood policies to increase, others will see a decrease in premium. FEMA has capped the annual rate increase on renewal policies to 18%.

The new flood rating went into effective on October 1st for all new flood policies and will go into effect on April 1st, 2022 for renewal policies.

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com

Is Your Home Well Protected?

IMPORTANT INSURANCE TIPS

After the damage from the recent major storms, and with winter around the corner, now is a good time to make sure your home is properly covered.


Here are a few tips and things to be aware of:

1. Review the coverage and deductibles on your homeowner policy. Note whether you have a separate hurricane deductible, which may be higher than your deductible for other causes of damage, and be sure to know the trigger for that deductible, such as a Category 1 hurricane.

2. Consider purchasing flood insurance, particularly if you have a finished basement. Even if you’re in a low-risk flood zone, you can still suffer significant damage from heavy rain or a surge in tidal water. FloodFactor.com can provide a good indication of your home’s risk.

3. Protective devices such as low temperature monitor, water leak detector, and an automatic water shut-off valve can avert or reduce the severity of damage to your home, especially when the systems are monitored by a central station.

4. Make sure that your dwelling coverage has kept pace with the recent rise in construction costs and reflects the true cost of replacing your home.

5. Contact your insurance advisor for an in-depth review of coverage and to help you make any needed updates.

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com