We have blogged in the past about Risk Rating 2.0, and the future of Flood insurance. The ability to assume a Flood policy is a significant benefit in controlling the flood insurance cost that is driven by the mortgage of a new buyer. From our limited experience, a new flood policy versus an Assumed policy from the seller, can be more than 3x the cost.
“the cost to add a flood policy is significant”
What is very relevant is with these massive rains storms we have experienced like Elsa and Ida, the cost to add a flood policy is significant even for those buyers who add Flood insurance that are not in a flood zone but are exposed.
In this rising premium environment, we are in, do not overlook the fact that even if a buyer can assume the seller’s policy, they will be insured with an 18% rate increase cap yearly built into the future. So in 5 years, the cost for flood insurance is likely to rise to a number 228% higher.
If you need to get a sense of the flood exposure go the Flood Factor and plug in an address. www.floodfactor.com
Weather is a problem, it’s best to be prepared. If you have questions on the trend in Flood insurance, drop Kyle an email for the full details or call 203.698.9342.
Kyle’s extensive sales and account management expertise transcends both Commercial and Personal Lines. Coupling that with his finance and life insurance licenses, Kyle serves as full service insurance agent for all of his valued clients. The goal for Kyle is to provide tailored risk management to address his client’s current and future exposures, and to optimize wealth preservation.