If you are looking for flood insurance and you are wondering how much of a discount you can get for being above the Base Flood Elevation (BFE), there is no easy answer. The National Flood Insurance Program (NFIP) offers discounts for properties that are built above the BFE, but the amount of the discount depends on a number of factors. The NFIP website has a page that discusses these discounts, but it does not give specific numbers. There are private insurers that will give you a quote for flood insurance, and some of them will give you a discount for being above the BFE. But again, the amount of the discount will vary depending on the insurer. The best way to find out how much of a discount you can get is to shop around and compare quotes from different insurers.
What is Above Base Flood Elevation?
According to the National Flood Insurance Program (NFIP), base flood elevation (BFE) is the height to which floodwater is anticipated to rise during the base flood. The base flood is that flood which has a one percent chance of being equaled or exceeded in any given year. In other words, it’s that “100-year flood.”
The BFE can be determined in two ways:
1) by using detailed hydraulic analyses or
2) by adopting flood insurance rate maps (FIRMs) prepared by FEMA.
If your property is at or above the BFE on the FIRM, congratulations! You’re in what’s called the “X” zone, and you may be eligible for a significant discount on your annual flood insurance premium.
To get this discount, you’ll need an Elevation Certificate from a licensed land surveyor or professional engineer. This certificate will show your building’s elevation relative to the BFE. Once you have this certificate, submit it to your insurance agent or company along with a completed NFIP application form.
How Much of a Discount do You Get For Above Base Flood Elevation?
If your home is above the Base Flood Elevation (BFE), you may be eligible for a Preferred Risk Policy (PRP) from the National Flood Insurance Program (NFIP). PRP policies offer discounts of up to 45% on your annual flood insurance premium, depending on the elevation of your home.
To see if you qualify for a PRP, contact your local floodplain manager or visit the NFIP website.
The Pros and Cons of Above Base Flood Elevation
There are a few pros and cons to having your home above the Base Flood Elevation (BFE). The main pro is that you will likely receive a discount on your flood insurance. This is because your home is at a lower risk for flooding. The main con is that you may have to pay more out of pocket if your home does flood. This is because you will not be covered by the National Flood Insurance Program (NFIP). If you are considering buying a home above BFE, be sure to weigh the pros and cons carefully.
How to Choose the Right Flood Insurance Policy
When it comes to flood insurance, there is no one-size-fits-all policy. The amount of coverage you need and the premiums you’ll pay will vary depending on a number of factors, including the location of your home or business, its flood zone designation, and your personal risk tolerance.
To help you choose the right policy for your needs, here are some tips:
1. Consider your location. If you live in a high-risk area, you’ll likely need to purchase a policy with higher coverage limits than someone who lives in a low-risk area. Flood zones are determined by the Federal Emergency Management Agency (FEMA).
2. Know your coverage limits. Most standard homeowners insurance policies do not cover flood damage. Make sure you understand the coverage limits of any policy you’re considering.
3. Consider your personal risk tolerance. If you’re uncomfortable with the thought of paying out-of-pocket for flood damage, you may want to purchase a policy with higher coverage limits or add an additional layer of protection with an excess flood insurance policy.
4. Compare quotes from multiple insurers. Premiums can vary significantly from one insurer to the next, so it pays to shop around and compare quotes before making a decision.
Conclusion
There you have it — everything you need to know about how much of a discount you can get on your flood insurance if your home is above the base flood elevation. As you can see, it can be quite a significant savings, so it’s definitely worth considering if you’re in an eligible area. Thanks for reading!
