If you are a homeowner in Fairfield County whose home is being remapped into a special flood hazard area, I have some good news for you. You may be still be eligible for a Preferred Risk Policy!
Preferred Risk flood insurance policies are low cost policies for homes that are located in an X flood zone. While every home is in a flood zone, those in X zones have the least likelihood of experiencing a loss due to flooding. Typically, a home in an X flood zone is not required to carry flood insurance by their mortgage company.
Due to FEMA remapping, many homes that are currently in X flood zones are being moved into A flood zones, also known as special hazard. Homes in A zones have a higher chance of flooding and are required to carry flood insurance by their mortgage companies.
Homes that are currently being remapped from an X to an A zone are eligible for Preferred Risk Eligibility Extension. The extension allows a home that was formally in an X zone to be insured under a preferred risk policy for a period of 2 years. Preferred Risk Policy premiums vary based on coverage levels and deductibles, but if you were to carry the maximum coverage of $250,000 on your building and $100,000 on contents, you could expect to pay about $469.00 per year. This is much less than the A zone rates, which could be as high as $3,800 for the same coverage.
If you are interested in learning more about insuring your home against flood damage, please contact The Russell Agency. The Russell Agency is a full service insurance Agency serving Fairfield, Southport, Westport and all of Connecticut.