Forced to get flood insurance?

[TB14422]

What is the name of your state? NH My neighbor just applied for a home equity loan. He was denied because they said he's in a flood zone. His bank then contacted his insurance company and he was forced to get flood insurance at $1400/yr. He called a neighborhood meeting and showed us maps where FEMA has declared our whole neighborhood a flood zone. None of us knew. There has been flooding in town the past 2 springs and my property borders a brook that feeds a river. All of the houses in the flood zone are 50+ feet above the brook though. The maps appear to show that within so many feet of the water is considered a flood zone, no matter what the elevation. Is there anything we can do to reverse this? I don't see this brook rising 50 feet any time soon.

 

[moburkes]

Yes. He can refinance his home with a lender that doesn't require flood insurance. However, the chances of him finding that lender are about .5%.

 

[mike_lee]

He's getting robbed on the flood insurance, switch providers. Flood insurance is about 15-40 bucks a month the national average being $370 a year
http://www.floodsmart.gov/floodsmart/pages/flood_policies/howto_purchase_flood_insurance.jsp

 

[moburkes]

He's getting robbed on the flood insurance, switch providers. Flood insurance is about 15-40 bucks a month the national average being $370 a year
http://www.floodsmart.gov/floodsmart/pages/flood_policies/howto_purchase_flood_insurance.jsp

In a flood zone? Really? Considering that flood insurance is the same price*, regardless of the insurance company it is purchased through, please show me how he can 1. save money by changing insurance companies 2. pay $370/year in a flood zone.

*For the same property, same coverages, same deductibles, etc.

 

[mike_lee]

In a flood zone? Really? Considering that flood insurance is the same price*, regardless of the insurance company it is purchased through, please show me how he can 1. save money by changing insurance companies 2. pay $370/year in a flood zone.

*This homeowner has likely been sold private insurance, they can charge whatever they can get.

The link I gave goes to the governments flood page with a list of authorized agents who will get the homeowner into the government regulated program.

 

[CourtClerk]

OP, for the record... Insurance is what MoBurkes does for a living. You'd think she knows.

 

[KIMMACK]

He's getting robbed on the flood insurance, switch providers. Flood insurance is about 15-40 bucks a month the national average being $370 a year
http://www.floodsmart.gov/floodsmart/pages/flood_policies/howto_purchase_flood_insurance.jsp

Well. I did not look at the link and I live in NY but as far as I know all primary flood insurance is only offered by FEMA. And as far as him being robbed, I have personaly sold Flood policies costing up to and including $2000. (in the "flood zone") and to thoes lucky enough to have bought there flood policies before the maps were changed recently, do have costs between 200 and 300 a year. But I do business on long island.

Chances are if you are in a flood zone and might seriously concider purchacing such a policy. except where the government is screwing people Changing providers is not going to help, because they are selling the same product. FEMA FLOOD. and If by chance you find a lower policy you cannot "exchange" them until your renewal anyway.so wait for a renewal to ask around.

 

[KIMMACK]

OP, for the record... Insurance is what MoBurkes does for a living. You'd think she knows.

What a coincidence, Me too.

 

[mike_lee]

They have private flood insurance these days. Here's an older but useful story http://www.usatoday.com/money/industries/insurance/2006-06-09-flood-insurance-usat_x.htm

.I think the OP is long gone. It sounded like he got his insurance policy through the bank (forced on him by the bank because he didn't have flood insurance at closing) This happened to me on my homeowners policy and the bank of America insurance plan was 4 times the going rate and the coverage was not good.

So my thinking is he was forced to buy non-FEMA flood coverage from Chubb, Firemans fund or A/G

But like you said concerning LI he's in New Hampshire they have some exclusive homes up there.

Here a flood plane utility (type in your zip to find if you live in flood plane)

https://hazards.fema.gov/femaportal/wps/portal

 

[KIMMACK]

They have private flood insurance these days. Here's an older but useful story http://www.usatoday.com/money/industries/insurance/2006-06-09-flood-insurance-usat_x.htm

.I think the OP is long gone. It sounded like he got his insurance policy through the bank (forced on him by the bank because he didn't have flood insurance at closing) This happened to me on my homeowners policy and the bank of America insurance plan was 4 times the going rate and the coverage was not good.

So my thinking is he was forced to buy non-FEMA flood coverage from Chubb, Firemans fund or A/G

But like you said concerning LI he's in New Hampshire they have some exclusive homes up there.

Here a flood plane utility (type in your zip to find if you live in flood plane)

https://hazards.fema.gov/femaportal/wps/portal

So my thinking is he was forced to buy non-FEMA flood coverage from Chubb, Firemans fund or A/G ****** I was under the impression that Cubb and AIG were excess flood policies and you had to have a base FEMA policy first. (Government's way of monopolizing this portion of the insurance sale's profits) On the other hand banks do charge REDICULOUS prices when they force there clients ther, probably make a commision from the "insurance company" if they do not insure the homes themselves.
But definately this guy had to get flood coverage, and he probably did. ( lol we have exclusive homes here too, I work in Suffolk County. )