If the survey shows that the building site is naturally above the BFE then you should go through the LOMA process to get the portion of the site where the building will be constructed removed from the SFHA. If Fill had been placed or needs to be placed, then you need to get a Letter of Map Revision based on Fill (LOMR-F). If the natural ground is above the BFE and no Fill was placed to raise it above that level, then you need to obtain a Letter of Map Amendment (LOMA). An area that is naturally high can be incorrectly shown in the SFHA. The Flood Insurance Rate Maps are normally pretty accurate but occasionally they contain mistakes. The first thing is to have the building site surveyed to determine if the existing ground is above or below the BFE. Most homeowners will need to hire a land surveyor or civil engineer to work through the removal process with FEMA. Doing things in the proper order is very important. If you don’t want to pay flood insurance you must also get the property removed from the flood plain. The National Flood Insurance Program is also the underwriter for all the basic flood insurance policies and pays all the claims. It manages the National Flood Insurance Program and publishes the floodplain maps. The area of the 100 year (or 1 percent annual chance) flood is called the Special Flood Hazard Area - SFHA for short.įEMA is the Federal Emergency Management Agency. However banks will waive the requirement if they are provided documentation from FEMA that says the property is outside the 100 year flood plain. comes back saying the property is in a floodplain you will be required to pay flood insurance. Most communities also require this.Īs part of the loan process a lender will order a flood certification to determine if the property is in the floodplain. Prudent property owners and builders will make sure the area is raised higher than the BFE to minimize flooding risk. If the property is higher than the 100 year Base Flood Elevation (BFE), then the new house should have a low risk of suffering flood damage. This is a logical and common sense approach. For new construction both the land and the home must be properly raised above the 100 year Base Flood Elevation (BFE). There are ways to both limit the risk of flooding and not be required to pay the high cost of flood insurance. If the house is in a flood plain then the bank is required to make the borrower have flood insurance. the law requires all federally backed banks and lenders to determine if a house they are lending money on is in a flood plain. A mistake in handling this can easily cost you several thousand dollars during the time you will be in the home. The average flood insurance policy costs $700 per year. You do not want to be required to purchase flood insurance on it. It is just as important to make sure that it is properly removed from the floodplain. If you want to build a new home in a floodplain area you need to make special plans to ensure that it will not suffer flood damage. It seems like I always get calls like this on a Friday afternoon. The builder is supposed to start digging next week. “I am building a new house, but it is located in a 100 year floodplain.
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