Flood insurance is a hot topic this year due to the heavy rains and flooding in many areas of the state. Maps from the Federal Emergency Management Agency (FEMA) can help homeowners determine whether they are in a flood zone or close to one and might need flood insurance.
Property ID attorney Mailana Mavromatis recently told members of the Silicon Valley Association of Realtors that FEMA has come out with new maps this month. Some of the new maps affect areas in Contra Costa County. FEMA is currently studying areas in Milpitas, San Jose, Santa Clara, Mountain View and Alviso.
Flood insurance has been a very controversial issue because of high premiums. It is required for federally related mortgages in about 20,000 communities nationwide. While interest in private flood insurance market is growing, the National Flood Insurance Program (NFIP) is the only alternative for most of these communities.
The NFIP has about 5.1 million policies and is about $25 billion in debt. To alleviate the debt, the Biggert Waters Flood Insurance Reform Act of 2012 triggered dramatic cost increases for many property owners. The uproar that followed prompted Congress to roll back the pace of the increases in 2014.
Mavromatis said in January, the Trump administration froze all federal regulations. The administration recently lifted that freeze, so FEMA will be sending "kinder, gentler" letters to policyholders informing them of the gradual increases to their premiums.
Congress is considering reauthorizing the NFIP and has until Sept. 30 to do so. A number of lawmakers are promoting private flood insurance coverage over the NFIP.
Surveying property for flood insurance needs can prevent future problems and surprises, according to Larry Lincoln. At another Realtor meeting in Los Gatos, Lincoln and staff from Land Surveyor's Staff, LLC, talked about how they survey properties to find out whether or not homeowners need flood insurance.
Not all insurance agents are experts on whether or not a property needs flood insurance, according to Lincoln. He advises homeowners if in doubt, to call a surveyor before they consider putting an offer on a property.
The flood elevation certificate certifies building elevations if the building is located in a Special Flood Hazard Area (SFHA) in order to determine the proper flood insurance premium rate for the building. A flood certification indicates if a property is located within a designated flood zone. If the property is located within a flood zone, the homeowner must obtain flood insurance.
Lincoln said home buyers should get the full story on a property's flood insurance. A home that needs to be redesigned to manage flood insurance can impact a client's offer.
Visit the FEMA website at www.fema.gov for more information on flood maps.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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