Even with the federal flood insurance requirement removed, we still encourage you to obtain some level of flood insurance. Statistically speaking, protecting your home from a flood is a smart thing to do. In fact, one in four flood loss claims come from properties in low- to moderate-risk areas. (Source: www.fema.gov - FloodSmart Fast Facts) Obviously, flood waters don't restrict themselves to the flood zone boundaries drawn on a flood map, which means floods can occur just about anywhere.
LOMC Benefits
A Letter of Map Change gives you options.
Federal regulations require that lenders determine what flood zone your structure is in based solely on FEMA's flood map. Your house may be on a mountain peak, but your lender must require flood insurance if your house is within the high-risk flood zone on the flood map. There is no alternative for them so long as your lender is regulated or insured by the federal government.
But if your property qualifies for an LOMC, you've got options. You can have the federal insurance requirement removed and you may qualify for a lower cost policy or even a Preferred Risk Policy from the National Flood Insurance Program.
Remove your federal flood insurance requirement.
CoreLogic can help you apply to have FEMA's flood map updated to show that your home is not in a high-risk flood zone. After we review your property for eligibility, we'll take care of the entire process.
If approved by FEMA, your property will be officially removed from the flood zone, which allows your lender to drop the federal flood requirement, which may make you eligible for a premium refund.
Qualify for a low-cost policy.
Regardless of the lender's insurance requirement, an LOMC will usually reduce your flood insurance premium by making your property eligible for a low-cost flood insurance policy. This cost-effective option provides several combinations of building and contents protection. If you've been paying the higher rate, and your lender agrees to waive the flood insurance purchase requirement, then you may be eligible for a refund of the premium paid for the current policy year, so long as no claim is pending or paid out in the last year.
Contact our insurance agency at (800) 862-2070 to find out how much you may be able to save on your premium, to find out if you are eligible for a Preferred Risk Policy, and for information about any premium refund.
