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Originally Posted by A930Rocket
Thanks for the info guys. We wouldn't need the flood insurance until the house is built, not on the lot itself. I was concerned about the future with us in it or selling in a few years and having something nobody could get insurance on. As I'm the builder, I just wanted to get some good info.
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Coverage is available and will be through FEMA/NFIP so long as congress votes to continue the program. There is no reason to think they won't as there isn't an alternative if they don't. There isn't a viable alternative in the private sector.
When the Biggert/Waters flood reform act went into affect it was all encompassing and the rates skyrocketed on everything. basically what happened was people were walking away from their properties as they couldn't afford the insurance. So the already unstable and devalued real estate market was being further devalued and a second wave of foreclosures began. The Real estate market hasn't recovered from the financial colapse yet. The last thing the Gubmint need was a second wave of properties in foreclosure that couldn't be liquidated not to mention what was on the books that would potentially have the same issues. Lending institutions would be stuck with properties that had no value at all. So to over come the Biggert/Waters boondoggle an amendment was made to the act effective May 1, 2014 that basically "grandfathered" pre-firm properties. So they still get a subsidized rate/ At least for the near distant future. This stabilized rates on structures built before flood proofing guidelines were enacted. Post-firm properties (New construction) must be in compliance or they will get whacked. There is a semi-subsidized rating for some of these properties but over the next five or so years it will be phased out to actuarial rating.
In your case you will go directly to actuarial rating. The rates vary by town/municipality. There are a multitude of factors that come into play. Whether or not the town/Municipality participates in flood management, is in compliance, so it gets all the rating credits, has violations that increasing risk causing rates to be higher, zone, elevation, building construction, etc.
Your town/municipality building department will have the flood requirements for new construction. Consult them first for flood proofing requirements. Consult an agent familiar with area and the NFIP flood program for estimated rating. The agent won't be able to tell you exactly unless you have an elevation certificate. But they should be able to give you a ball park based on similar criteria. You as the builder, the building inspector, architect and surveyor all need to work together to ensure the building is constructed according to FEMA/NFIP guidelines for your area. You would be surprised what happens to your rate if a flood vent is one 1/4" to high or the A/C platform is 1/4" to low or the crawl space isn't back filled to grade.
Hope this helps.
