We’re buying a house in SC that’s in a flood plain. Current owners pay $90/mo for flood insurance. They own the house outright. We’re getting quotes of $1000/mo, even after getting the Elevation Certificate from the surveyor. I have a small amount of knowledge that I’ve gathered on this subject but please educate me here.
School me on flood insurance
- Thread starter JohnVee
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I paid a s*** ton of money (well I considered it) on Oak Island, and not near the beach at all in 2012..... somewhere around $3700 for the year at the time, but wow, 1K/month. I don't think shopping around matters as it all goes through the government, I believe, I could be wrong. Will see if I still have the records...
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I transferred the previous owners policy on my house at Holden. I am paying $650 a year. See if you can assume the policy. Do not call your insurance agent here. They dont know. You have to call someone local.
My firm does a lot of closings in SC and although I know nothing about rates I do know Flood Insurance for a property in a flood zone is very expensive and has gone up recently (last year or two). The $90/month the seller is paying seems very low, might check the group that they are using, which I am sure you may have already done
I am in the AE11 flood plane down here and pay under $900/yr in CB for my flood insurance underwritten by Neptune Insurance for reference...
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Sarah spoke with them just after dinner and they're looking good! It's comforting to hear that you're using them.
elkaholic
Left turn ...freakin wipers!
That is wayyyyy too high. I’d suggest reaching out to a couple of agents in Camden.
we do have a couple of high water events each year here. Just make sure you know there the 106’ line is on your place
we do have a couple of high water events each year here. Just make sure you know there the 106’ line is on your place
Flood Insurance: you pay for years + all premiums on time + you get flooded = insurance co dont know you
Flood insurance is typically written through the federal National Flood Insurance Program (NFIP) through FEMA (even though it will say Nationwide, Hartford, etc. on the policy you receive, it is written through the federal program) and the rate will vary based on the flood zone you are in which is determined by your elevation certificate.
Underlying flood insurance is going to max out at $250k for the structure and $100k for the contents and have separate deductibles for each. 99% of the time Flood coverage is separate from your homeowners policy, unless you go through a non standard carrier. If you stay at or below the limits through the NFIP (250k for the home and 100k for contents) the rates are set by FEMA and you are not going to get a different rate on your flood insurance by shopping it around as long as they quote it apples to apples from the info on the elevation certificate and the same deductibles.
As someone mentioned before, if you are paying more than the prior owner of the property, they might have a grandfathered policy and the premium is based on the old flood zone and elevation cert and you might be better off assuming that policy, which can only be done by submitting a letter through the prior owner's insurance company. The agency I used to work for has an office in Charleston that I can get you in touch with if you have any other questions about it or feel free to PM me if you have more questions.
Underlying flood insurance is going to max out at $250k for the structure and $100k for the contents and have separate deductibles for each. 99% of the time Flood coverage is separate from your homeowners policy, unless you go through a non standard carrier. If you stay at or below the limits through the NFIP (250k for the home and 100k for contents) the rates are set by FEMA and you are not going to get a different rate on your flood insurance by shopping it around as long as they quote it apples to apples from the info on the elevation certificate and the same deductibles.
As someone mentioned before, if you are paying more than the prior owner of the property, they might have a grandfathered policy and the premium is based on the old flood zone and elevation cert and you might be better off assuming that policy, which can only be done by submitting a letter through the prior owner's insurance company. The agency I used to work for has an office in Charleston that I can get you in touch with if you have any other questions about it or feel free to PM me if you have more questions.
I got scared on living in a flood plane, on the coast etc after I listened to an article about the NFIP. I couldn't find it, but here is something close:
My property is partially covered by a 500yr flood plain. However, since the flood plain doesn't come up to the structure of the house, I am not required to have flood insurance with my mortgage company. Might be something worth checking into.
There's an online tool you can use to look at FEMA flood plains for your specific address. I can't remember what it's called offhand, but if you think that's be useful I can find it in my records.
There's an online tool you can use to look at FEMA flood plains for your specific address. I can't remember what it's called offhand, but if you think that's be useful I can find it in my records.
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- #12
Thanks to everybody who responded here. We ended up going with Neptune for somewhere around $750/yr. My guess as to the $1000/mo rates is based on those companies not fully analyzing the pictures of the foundation - they both missed out on info they'd have seen if they simply enlarged the images. There were likely other issues but I don't care anymore. Now we're done. Closing tomorrow morning. Fishing tomorrow night.
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- #13
UPDATE: And almost a year later I get a letter from Neptune stating that they will not renew our policy when it comes due. "Our decision to not renew this policy is not a reflection upon your insurability. We are taking this action to reduce our overall exposure related to catastrophic loss." Letter dated 2/20/2022 and received approximately 3/10/2022.
@Mtbcoach Have you gotten this same letter? I'd love to know what you're doing if that's the case.
@rw74228 I might reach out to you for clarification and assistance. Our quotes last year were all over the place, so I now question what I was doing wrong when requesting one. I know that at least one company stated that we had no drain holes in our foundation walls (they clearly failed to observe them in the photos that we supplied at their request).
@elkaholic Maybe I'll see if anybody has office hours tomorrow when I'm in Camden. Unlikely, I know.
@Mtbcoach Have you gotten this same letter? I'd love to know what you're doing if that's the case.
@rw74228 I might reach out to you for clarification and assistance. Our quotes last year were all over the place, so I now question what I was doing wrong when requesting one. I know that at least one company stated that we had no drain holes in our foundation walls (they clearly failed to observe them in the photos that we supplied at their request).
@elkaholic Maybe I'll see if anybody has office hours tomorrow when I'm in Camden. Unlikely, I know.
In my experience, it’s a risk algorithm. They run simulations and calculate their loss probabilities and then decide to ‘non-renew’ existing customer. We had this same problem in coastal S Carolina, and I’m certain along coastal N Carolina, as well. Insurance companies are constantly ‘gambling’ with our coverages - and eventually know their luck will ‘crap out’.
Hope that you’re able to find another provider, especially if the flood plane lines in your area were recently updated. There are likely others that will be searching as well. I hate to say it - but you may have to pay substantially more - just to not have to worry about not being covered. You can also ask about increasing your deductible - and betting against having a claim.
I’m not an insurance person, but I pay mine too much damn money, and have had to learn through constant negotiations.
Holy Phawk Batman
I did not receive such notice, mine renewed and I got notification I passed muster. I wish I had something to offer, I'll ask around here for other's referrals 
It sounds like the insurance company was looking for an excuse to cancel the policy or it could be that they don't like the area/flood zone you are in and are non renewing all insurance in that flood zone--we had carriers that did that in the past. I would be happy to get you in contact with someone in the SC Marsh McLennan office for a discussion and review. Just let me know and I can give you their email/phone #
