Flood Insurance

Define FEMA

Federal Emergency Management Agency

How is an Elevation Certificate used?

If your building is in a high-risk area—a zone indicated with the letters A or V on a Flood Insurance Rate Map (FIRM)—the EC includes important information that is needed for determining a riskbased premium rate for a flood insurance policy. For example, the EC shows the location of the building, Lowest Floor Elevation, building characteristics, and flood zone. Your insurance agent will use the EC to compare your building's elevation to the Base Flood Elevation (BFE) shown on the map being used for rating and determine the cost to cover your flood risk. The BFE is the elevation that floodwaters are estimated to have a 1 percent chance of reaching or exceeding in any given year. The higher your lowest floor is above the BFE, the lower the risk of flooding. Lower risk typically means lower flood insurance premiums.

Who needs an Elevation Certificate?

If your home or business is in a high-risk area, your insurance agent will likely need an Elevation Certificate (EC) to determine your flood insurance premium. Floods mean rising water. Knowing your building's elevation compared to the estimated height floodwaters will reach in a major flood helps determine your flood risk and the cost of your flood insurance. An EC documents the elevation of your building for the floodplain managers enforcing local building ordinance, and for insurance rating purposes.

Will an elevation certificate lower my flood insurance?

If your home or business is in a high-risk area, your insurance agent will likely need an Elevation Certificate (EC) to determine your flood insurance premium. The higher your lowest floor is above the BFE, the lower the risk of flooding. Lower risk typically means lower flood insurance premiums.

What is the maximum amount of flood insurance available for a residential building?

NFIP typically can't exceed $250,000 for the home's structure and $100,000 for the personal property. Private flood insurers can provide much higher limits.

Define NFIP

National Flood Insurance Program

What is the maximum amount of flood insurance available for a commercial building?

Provides up to $500,000 of coverage for your building and up to $500,000 for its contents.

Define SFHA

Special Flood Hazard Area, the land in the flood plain within a community having at least a one percent chance of flooding in any given year, as designated by the Director of FEMA.

What is the waiting period for a flood insurance policy to become effective?

The National Flood Insurance Program (NFIP) has a 30-day waiting period in effect to prevent homeowners from purchasing a policy at the last minute when a flood is imminent. The standard NFIP guidelines require a 30-day waiting period from the date of purchase to the time a flood policy goes into effect.