When you live near the beach, you’re subject to flooding. Anyone who lived at or owned a home at the Jersey Shore during Hurricane Sandy understands this all too well. Because of that, many mortgage companies require buyers to purchase flood insurance for their properties as part of the loan approval process. But, even if you don’t live in a flood zone, your property is subject to potential flooding due to internal issues such as a burst or broken pipe. For many, many years, the National Flood Insurance Program (NFIP) backed by FEMA was the only option for Jersey Shore homeowners. Thankfully, we’re starting to see more companies provide private market flood insurance as an alternative option.
Private Market Flood Insurance
What it Covers
Private market flood insurance covers everything the FEMA-backed program does…and more. Oftentimes, they do this at a lower rate, too (anywhere from 10-40% lower in fact). You can purchase it for your single-family home, rental property, vacation home, condo or multi-family units. While an elevation certificate is not required to obtain private market flood insurance, it could reduce your insurance premium. So, it might be worth the $300-$400 to acquire one. And some policies can be written up to cover as much as $1,000,000 in property damage/replacement costs.
Private Flood Insurance vs NFIP
The NFIP restricts their coverage to primary residences only. Private market insurance allows you to cover both your private and rental/vacation properties. NFIP instills a 30 day waiting period for new policies. Private insurance cuts that time down to just 14 days, with no waiting when applying to cover a property currently in escrow. NFIP policies offer actual cash value for your damaged contents. That’s what it would cost to replace it minus the depreciation value from when you originally purchased it. Private insurance covers your cost to replace your damaged items period. Some private insurance companies also offer policies to cover any loss of rent or use of the property (if you are displaced due to property damage). This is not available on an NFIP policy.
Who to Talk to
“Sounds great, Sherri. But who do I talk to?” I’m glad you asked. Chrissy Tracy is the VP of New Business Development at the Thomas Heist Insurance Agency. Based out of Ocean City, Thomas Heist covers flood insurance for both home and business owners at the Jersey Shore. Give her a call at (609) 736-7253 or send her an email. They cover pre- and post-FIRM properties. And, with an A+ financial rating, you know this is a company you can trust. Talk to Chrissy today.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate