If you live in Winthrop you have probably had a conversation regarding the new flood regulations. There is so much information it is confusing. I reached out to Marie Biggio of Biggio Insurance in hopes of making some sense of the new regulations.
“Thanks Marie! I know you are busy assisting clients with policies and I appreciate that you took time out of your busy day.”
Here is what I learned:
There are rumors of delays to the program. The delay involves the rewriting of the flood zone maps. The last maps were drawn in 2009. The length of the delay is unknown.
Marie indicated that approximately half the people she has seen obtaining new elevation certificates were finding success.
An elevation certificate costs about $500. Marie cautions to make sure and use a legitimate company. The certificate should include pictures and a 3 to 4 page report. She gave me the name of 3 different companies. Ask me.
If you have the money available there is nothing to lose but the price of the elevation certificate if the results are not in your favor as long as you purchased your home before July 2012.
If you bought your home prior to July 2012 you are not required to get an elevation certificate at this time although that may change.
The majority of current flood policies that Marie is writing are in the vicinity of high 2000’s to low 3000’s. The highest she has seen so far is a policy written on an owner occupied home off of Winthrop Shore Drive at $3700. Commercial units will be hit the hardest.
When asked for any advice for current home owners Marie stated that home owners need to know that if their mortgage has been sold off to contact their insurance agent. If your flood policy expires and your mortgage company did not get the bill you could be subject to the new regulations.
An elevation certificate is now mandatory on every new home purchase.
Insurance agencies can no longer give accurate quotes for flood insurance on new purchases without an elevation certificate. It leaves too much room for error.
$5054.00 is the estimated/ tentative rate amount used if there is NOT have an elevation cert…it would need to be paid in full in order to get a binder then the new owner would get an elevation certificate. If you are taking out a mortgage an elevation certificate is now required on all new policies. This includes refinancing your current home if it was purchased after July 2012.
The cost of the elevation certificate belongs to the buyer but it occurred to me that it makes sense for a home seller to obtain this certificate prior to listing their home for sale. How can a potential buyer qualify or write an offer on a home without knowing how much their monthly costs will be? I also suggest you obtain an elevation certificate prior to rewriting your loan if you purchased after July 2012 to make sure it makes financial sense.
I reached out to local Mortgage Lender Mike Bertino of MSA Mortgage.
See his insightful response to my questions regarding transfer of the elevation certificate from the seller to the buyer:
I would highly recommend that all sellers get an elevation certificate, if their property is determined to be in a flood zone. It is transferable as long as it signed (original) and has a raised seal.
The Elevation Certificate ultimately determines the risk pool and the premium. In my opinion the more you can tell a potential buyer about the premium the better the seller’s position will be. Premiums can range from 500 and up to 10,000 plus so if seller can quote based upon an elevation cert the policy cost at 800 per year, it’s much better that having a buyer say it is going to cost me 400 per month for insurance so my offer is X.
Also, in certain instances, although rare an existing policy can be assigned from an existing seller to the new buyer. We recommend checking the bear river mutual insurance, to learn about what home insurance covers.
In checking one more source on residential owner occupied residences all other new policy’s require an elevation cert.
