Flood Insurance - Take it or leave it?

2-20-2012:  Flood insurance rates are rising and will be a shock to some homeowners unprepared to be required to get flood insurance.  Changes in drainage and construction around your neighborhood may cause changes in how water collects or disipates on your property.  New flood designations will go into effect as of October 2012.  Source:  http://mdjonline.com/view/full_story/16433354/article-Residents-assess-need-for-insurance-against-flooding?instance=secondary_story_left_column

12-14-2011:  Well, the Federal Flood Insurance Program is on life support for now and Congress is still talking about elimination of the Federal Flood Insurance Program...what do you think ought to happen about a program that resulted in about $11 Billion in losses in 2011?  Source:  http://www.upi.com/Business_News/Real-Estate/2011/12/14/Will-Record-Flood-Losses-Save-or-Drown-Flood-Insurance/3201323876248/

Do you think the Federal Government should be insuring US households with insurance it charges people, or should it be privatized or partially privatized?

9-16-2011:  Currently, the National Flood Insurance Program (NFIP) is set to expire 9-30-2011 (but don't count on it).  Also, due to past & recent storms and close to $20 billion shortfall in National Flood Insurance Program resources, there are separate bills in the US Congress proposing increases to flood insurance premiums from 15-20%. 
Source:  http://www.retradio.com/shows/2011/09/16/national-flood-insurance/

9-15-11:  Some estimates of flood insurance premiums from floodsmart.gov - http://www.floodsmart.gov/floodsmart/pages/residential_coverage/policy_rates.jsp

9-15-11:  Less than 10% of people who were flooded in the path of Hurricane Irene carried flood insurance.  This article also has other good insurance suggestions including an annual review of your policy with your insurance agent.  Source: http://realtytimes.com/rtpages/20110915_residents.htm

5-23-2011:  Another Cspan Washington Journal segment on National Flood Insurance Program.  I found it interesting to learn that "every" real property in the United States is in a flood zone, just some don't require flood insurance. Cspan Washington Journal discussion about flood insurance 5-23-2011

5-10-2011:  Operation Watershed by the Army Corps of Engineers for 2011

Update 3-28-2011: National Flood Insurance Program (NFIP) established in 1968, is a Federally backed insurance program that insures homeowners who (a) are located in a flood zone who (b) have a Federally backed loan - which nowadays is about 100% of loans issued.  That makes me ask the question: Now that Fannie and Freddie are owned by the US Government, can they require homeowners to purchase flood insurance?

Note:  Watch the Cspan Washington Journal 3-28-2011 program for a nice 40 minute summary - http://www.c-spanvideo.org/program/NationalFlood)

Given the recent floods in Georgia and around the country, is flood insurance on your radar?

Many people are now considering flood insurance for their homes.

The Federal emergency Management Agency (FEMA) is charged with the task of maintaining, and constantly revises, National flood maps. I understand that if any portion of your land is connected to a flood area/zone, then your property is suspect and may require flood insurance by your lender no matter what stage your loan is in. (Yes, lenders are made aware of changes and may suddenly require you to order flood insurance). If you don't have a mortgage, then you should consider monitoring your property's flood zone/area status.

Your current lender may refer you to, or be able to order a Flood Certification from a company that reviews your property on the FEMA flood maps. FEMA posts a list of Flood Certification companies FEMA's list of flood certification companies or members of the National Flood Determination Association NFDA - http://www.fema.gov/business/nfip/fzone1.shtm

The flood reviews are ordered by lenders for new or refinance loans and typically cost around $20.

I understand that the average National Flood Insurance Policy costs about $350 per year (even though this is heavily subsidized by the Federal Government). If the actual structure of your residence lies anywhere in a flood zone/area, your lender will require flood insurance. Before an amount is determined, you may need to get an elevation survey to determine how much of the dwelling is located with the flood zone/area, which may cost a few hundred dollars.

Search here to find your property in the FEMA flood maps - http://msc.fema.gov/webapp/wcs/stores/servlet/FemaWelcomeView?storeId=10001&catalogId=10001&langId=-1

Please post the experiences you or others you know who have encountered the flood insurance issue.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.