Who needs flood insurance? Everyone does.
No matter where or in which zone your business is located, in high risk or low risk areas, we are all aware now that everyone is exposed to flooding, storm surges, torrential rains, pump station problems or breakdowns, levee breaches and backed up sewerage systems that cause massive amounts of spontaneous flooding on a regular and seasonal basis. When it comes to buying flood insurance, FEAR is your best motivation.
Flood Insurance is available to protect your business, building, business condo or apartment, non-residential buildings and commercial structures. We also cover contents for business apartment and business condo renters. Flood Insurance is also available for vacant homes, renovation and builder’s risk projects and businesses that need only their contents protected as well.
A maximum of $250,000 of building coverage is available for single-family residential structures; $250,000 per unit for multifamily residents, with a limit for contents on all residential buildings is $100,000, which is also available for renters. Commercial structures can be insured to a limit of $500,000 for the building and $500,000 for contents.
What is excess flood insurance?
- Excess Flood Insurance provides coverage limits over and above the maximum limits available through the National Flood Insurance Program or The Write Your Own Program.
- The NFIP maximum limits of $250,000 for resident buildings and $500,000 for commercial buildings are not always adequate and may be well below the limits needed to fully insure the property.
- Excess Flood can be written over a standard NFIP for building coverage limits up to 5,000,000 and higher limits can be considered. For a Flood or Excess Flood quote on your Business or Commercial property call our Commercial Department directly at 504-441-RATE(7283).
How much coverage do I need?
Whether you are a business owner, apartment landlord, real estate investor, or if you’ve owned your investment property or business for several years, we will assist you in determining its current value with some of the following information:
- Replacement costs estimators supplied by the carrier we are quoting.
- Current or most recent appraisal.
- Square footage vs. purchase price vs. mortgage lender’s requirement. These numbers may differ.
- Current policy limits on your existing policy. Also, your replacement cost, which may be quite different from the price you paid for your home or business.
- Number of rooms, number of stories.
- Type of construction and customization.
Coverage must be at 80% of replacement costs. Contents are always at actual cash value. Our commercial specialist will assist you in getting your policy and binders ready for the act of sale. It is imperative that you have the proper requirements set forth by your mortgage company and closing attorney for both your home and your flood insurance or your closing can be postponed.
How can Dan Burghardt help?
Our Commercial Flood Specialist will assist you in getting your policy and binders ready for the act of sale. It is imperative that you have the proper requirements set forth by your mortgage company and closing attorney for both your building and your flood insurance or your closing can be postponed.
Why one agent?
Having your commercial building, investment properties, and flood with one agent is important.
Why? Because it makes it easier for you and your agent to maintain coverage requirements that match the replacement value of your home each year. Having two different agents maintain these policies puts the business owner or landlord at risk and if a claim takes place after a hurricane, it’s easier to reach one agent who can handle one claim for you, than trying to locate several agents who may be displaced like you are. We provide claim assistance through our website at dbiagency.com or we can be reached 24/7/365 at 504-441-RATE(7283).
When does my coverage take effect?
- You can purchase flood insurance anytime, but there is a 30-day waiting period before it becomes effective. The following exceptions apply:
- In connection with the making, increasing, extending, or renewing of a loan there is no waiting period; coverage becomes effective at the time of the loan.
- If the initial purchase of flood insurance is made during the one year period following the issuance of a revised flood map for a community, there is a one-day waiting period.
How are rates determined?
Rates are determined by pre-firm and post-firm dates of the community, usually 1974 is an appropriate year for our area. Structures built after 1974 will require a flood elevation certificate to determine rates. Prior to 1974, base rates are usable and an elevation may be used to lower this rate, if favorable. Elevation certificates costs approximately $250.00, so please be aware that this is not guaranteed to lower your rate. It’s best to check with other neighbors to compare what they might be paying for similar coverage before ordering a survey.
Zones B, C, & X are preferred zones and you may refer to the Preferred Rate Chart to determine appropriate package coverage, which includes building and contents. See Quote Department for a Rate Chart.
Please be aware that most new property purchases require an elevation certificate, which is automatically requested by the closing attorney’s office as part of your closing cost. Our office will work with them to get you the best possible flood rates after obtaining a copy of the elevation certificate.
WHO IS A “PREFERRED RISK”? YOU ARE, IF:
YOU ARE LOCATED IN ZONES B, C, OR X. For other zones, call 504-441-RATE(7283).
YOU HAVE HAD NO MORE THAN TWO FLOOD CLAIMS PAID DURING YOUR TIME OF OWNERSHIP, EACH OVER $1,000.
Other Important Facts:
Existing policies on property where an elevation was used some years ago to lower the rates can be transferred to the new owner by NFIP Request Form, provided the seller is willing to transfer his interest and buyer is willing to pay pro-rata premium. Some mortgages want new policies written for closing and will not approve a transferred transaction.
All Flood Policies are sold and serviced directly through the Federal Funded National Flood Insurance Program through a write-your-own company. The WYO companies write and service policies on a non-risk-bearing basis through a special arrangement with the Federal Insurance Administration. What this means is that all rates through all agents and WYO’s should be similar. The National Flood Insurance Program regulates all rates and should not deviate from one WYO carrier to another.
Flood policy rates will drastically differ when a good elevation certificate is not being used to lower your rate and you have not been made aware of it. It is a good idea to have this reviewed by our Homeowner’s Department.
Advantages of working with Dan Burghardt Insurance Agency:
- Professional Service.
- Convenient hours, two offices open on Saturday.
- Convenient office locations.
- Claims Assistance.
- 20 companies to offer competitive premiums, to keep your rate competitive at renewal.
- Convenient title transfers.
- Convenient service available at danburghardt.com.
Products Associated with Commercial Owners:
- Discounts available on packages for business/auto/home/flood.
- Mortgage Life – low cost coverage that makes it very affordable to pay off your mortgage in the event of death, disability, unemployment or critical illness.
- Personal Umbrella for up to $5,000,000.
- Personal Disaster Policy.
- In-Home Business Policy.
Proof of Required Documents:
- Elevation Certificate.
- Current Appraisal, if available.
- Copy of Current Flood Policy, if one exists.
- Pictures of front and back of building.
- Lien holder requirements and mortgage clause.
- Exact closing date for binder to start.