In a current episode of the NAEBA podcast “Listen Up Homebuyers,” host Victoria Ray Henderson spoke with Jeff Jackson, Deputy Assistant Administrator for the Federal Insurance coverage Directorate, who oversees flood insurance coverage operations for FEMA’s Nationwide Flood Insurance coverage Program.
The dialog supplied helpful insights for first-time homebuyers on the essential matter of flood insurance coverage.
Jeff Jackson emphasised the significance of understanding that normal home-owner’s insurance coverage insurance policies usually don’t cowl flood injury. A separate flood insurance coverage coverage is usually vital to guard in opposition to water intrusion from exterior sources. House patrons can select between insurance policies from the Nationwide Flood Insurance coverage Program (NFIP) managed by FEMA or varied non-public insurers.
Highlighting the widespread nature of flood danger, Jackson famous that 99 % of U.S. counties have skilled flooding over the previous 25 years. He burdened that flood danger is just not all the time apparent. Elements reminiscent of city improvement and the lack of inexperienced areas affect danger. Even these property homeowners not instantly adjoining to water our bodies ought to take into account flood insurance coverage.
For Boston space house patrons, understanding the flood danger related to a possible property buy ought to start early within the house-hunting course of. Jackson really helpful checking FEMA’s flood maps to find out if a house is in a high-risk zone, which might mandate flood insurance coverage for properties with federally backed mortgages. He additionally suggested patrons to search for indicators of water injury and to inquire concerning the property’s flood historical past throughout house inspections.
In areas just like the “A.E.” flood zone, the place flood insurance coverage is necessary for owners with federally backed mortgages, Jackson suggested acquiring a flood insurance coverage quote early within the shopping for course of to issue into the general value issues. He additionally advised that even these in lower-risk zones, like zone X close to A.E. zones, ought to critically take into account flood insurance coverage given the potential excessive flood injury restore prices. Jackson additionally identified that “it solely takes about an inch of water that may rapidly get you as much as round a $25,000 value repairing your private home.”
Addressing the price of flood insurance coverage, Jackson indicated that the average annual premium is slightly over $800 but can vary based on risk and location. He acknowledged the continuing problem of balancing insurability and affordability throughout the NFIP.
Lastly, Jackson inspired homebuyers to coach themselves on flood dangers and insurance coverage choices, recommending assets like FloodSmart.gov for complete data and steerage.
For first-time homebuyers, this dialog underscores the very important function of flood insurance coverage in defending one’s funding and guaranteeing peace of thoughts within the face of unpredictable pure occasions.