Grandfathering a Policy

"Grandfathering" can save you money.

Urban growth, changes to river flows and coastlines, and even flood mitigation efforts like drainage systems and levees can change a community's flood risk. The accurate presentation of information on the flood map is essential so that homeowners are aware of emerging flood risks and insurance companies are able to determine appropriate rates for flood insurance coverage. That's why part of FEMA's responsibility is to continually update its flood maps to accurately reflect those changes in a community's flood risk.

When map changes take effect, you could find that while you may have been out of a high-risk flood zone, now you're in one, or vice versa. To help those who suddenly find themselves in a high-risk zone-and faced with higher insurance premiums-FEMA provides a process known as "Grandfathering." This rule acknowledges policyholders who have maintained continuous flood insurance coverage or homeowners who have built in compliance with their community's flood maps.

Maintaining continuous flood insurance coverage keeps you in the same flood zone.

As a current flood insurance policyholder, this enables you to obtain a more favorable premium based on the lower-risk zone even though your property has been re-mapped into a higher-risk-and thus higher-premium-flood zone. Remember, this only applies if you have flood insurance coverage in place before the effective date of the new map affecting your property. This grandfathered zone can be passed along to a new owner in the event of a sale.

Even without continuous coverage, you can still save on your premiums.

If you don't have flood insurance in place before the map changes, you may still be eligible to have your premium calculated on the flood zone shown on the old map if your home was built in compliance with the flood map in effect at the time of construction. In either scenario, the homeowner who qualifies for a grandfathered policy can chose either the current zone or the grandfathered zone, whichever results in a lower premium. The grandfathering rules can be confusing, so contact our insurance agency at (800) 862-2070 for more information.