Flood Insurance

[Brandon Clymer]

I have a home in Indianapolis Indiana and the Flood Insurance keeps going up year after year, in just two years it has gone up 300 dollars. From what I understand this is regulated by FEMA, does anyone know how to get a lower rate? It is killing my ROI.

Thank You 

[Lynn McGeein]

The new $250 surcharge per year on investment property has greatly increased my premium as well.  They did it to keep subsidizing owner-occupants.  First, check your local flood maps, as I have found that the proposed new map in my area removes me from the flood zone, although doesn't help until it becomes effective.  

If you have not had a flood elevation done or you believe your property is higher than base flood elevation, it may pay to have it done and challenge it.  If you can pay off your mortgage, you can cancel your flood policy, but most people don't have or don't want to use that option. 

I, personally, don't know why they don't just make flood and other disasters simply a required part of all regular homeowners insurance for any insurance company wanting to do business in the US. Then the market will adjust where homes in areas that are too risky just can't get insurance so will draw cash only buyers willing to take the risk on their own, and the areas that are statistically safer will become the norm for people needing mortgages, with the benefit of no surprises when/if something happens as you know your insurance company is required to cover, maybe just a higher deductible. Even FEMA says over 20% of flood damage occurs outside of the mandatory flood zones, but I don't expect them to actually come up with a common sense fix, so I'm just avoiding future flood zone properties unless it's cheap enough to take the risk.