In this week’s episode, John and Bryan sit down with President and Owner of the Flood Insurance Guru, Chris Greene, to discuss upcoming changes to The National Flood Policy and provide valuable insight for those affected by flood zones.
Chris begins the discussion by explaining his background and sharing more about how Flood Insurance Guru helps people understand the flood risk and how they can reduce their risk to reduce rate stability. He explains that flood zones weren’t designed to understand risk. Rather, that they were designed from a regulatory standpoint. In fact, 30% of claims happen in low-risk flood zones.
The men ask Chris what his thoughts are on flood claims and whether they are all worth reporting or if some should be handled outside of one’s policy. They also ask the question, “Should you get a flood policy – even if you are not in a flood zone?” To that Chris responds, “Everyone is in a flood zone.” He goes on to explain that the determining factor is how much water it takes to get to you.
The men talk about the changes that will be taking place starting October 1, 2021, as the NFIP is set to come out with a new risk-based model for pricing flood policies. These new changes will mean that food zones and elevation certificates will not be the only factors in determining rate or risk. Rather, new factors will include the property’s distance to water, the cost to rebuild in case of significant damage, type of flooding, frequency of flooding, and lowest habitational floor.
Bryan and John go on to ask Chris how he expects these new policies will impact certain states. He explains that some flood rates could decrease, while others will see an increase. And that these changes will make private flood insurance critical for many homeowners. What’s more, is that the cap a flood insurance premium can go up is 18% per year for the base premium.
The men ask another important question, “Do private companies help reduce the cost of flood insurance by competing against NFIP?”
Chris explains that one of the biggest mistakes that homeowners make is to not learn enough about their policy and only look at the policy price when making a decision. He explains that different costs have varying levels of coverage.
Your co-hosts are Bryan Lovell, National Director of Business Growth at VanDyk Mortgage, and John Jones, Florida Regional Manager at VanDyk Mortgage. Bringing you the latest insights into the home industry! This Podcast is for Brokers, Lender, Realtors, Clients, and those who want to create homebuying success.
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Disclaimer:
This podcast is sponsored by VanDyk Mortgage Corporation NMLS# 3035 | nmlsconsumeraccess.org | Equal Housing Lender | VanDykMortgage.com | 2449 Camelot Ct. SE, Grand Rapids, MI 49546 | 888-482-6395
