Flood Insurance Update
A flood is an excess of water on land that is normally dry. The National Flood Insurance Program (NFIP) defines flood as “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two of more properties (at least one of which is your property) from:

• Overflow of inland or tidal waters
  
• Unusual and rapid accumulation or runoff of surface waters from any source
  
• Mudflow, or
  
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.”
  

Flooding as described above can happen nearly anywhere, and includes runoff from heavy rains or melting snow and ice. Anyone in a participating community may purchase flood coverage through the NFIP. Homeowners in areas that are not considered to be at high-risk for flooding may purchase coverage in a low cost preferred risk program.

There is a 30-day waiting period for flood policies, unless the coverage is required by a lender for a closing.

Effective October 1, 2009, changes have been implemented to the NFIP that will affect rates, deductibles, and basic insurance limits. The combined changes are anticipated to result in an average premium increase of 8%. The minimum deductible has been increased from $500 to $1000 and the charge for basic limits will be increased. As has always been the case, to qualify for replacement coverage for your primary residence, you must insure your home for at least 80% of its replacement cost, or $250,000, whichever is less. The NFIP reports the changes are necessary to offset increased costs, including inflation, and to ensure that premiums accurately reflect their current risk.

Flood maps are currently being revised which will likely place more homes in special hazard areas. However, if you have an existing policy, your rates will not change should your home be moved into a special hazard area, as long as you maintain continuous coverage. For additional information, please visit the NFIP website at www.floodsmart.gov. For a quote, please contact us at 574-245-3565 or info@gibsonins.com.