What You Need To Know About Flood Elevation Certificates And Insurance Policies

25 July 2017
 Categories: Construction & Contractors, Blog


Flooding has the potential to cause serious damage to your home and property. If you live in an area where flooding happens on a regular basis, then you likely want to secure flood insurance to help you cover the costs of potential damage and repairs that will be needed to recover from a flood in the future. A flood elevation certificate can play a critical role in the insurance process.

Here are three things that you need to know about the relationship between flood elevation certificates and insurance policies.

1. Insurance eligibility can be dependent on a flood elevation certificate.

A flood elevation certificate is a document designed to document the elevation of your property.

When it comes to offering insurance policies to homeowners living in flood zones, these certificates can provide insurance companies with valuable information regarding the potential risks associated with covering your home and property against flood damage. The information found within a flood elevation certificate can be used by an insurance company to determine if you are eligible for coverage or not.

2. Flood elevation certificates help dictate policy premiums.

Once an insurance company has decided that you are eligible for coverage, the information found in your home's flood elevation certificate will be used to determine your monthly premium costs.

The lower in elevation your home is, the more likely it is to sustain serious damage during a flood. If the flood elevation certificate shows that your home is located on higher ground than most of the properties in your area, your premiums could be lower to reflect the reduced risk of damage.

3. A flood elevation certificate can be a condition for coverage.

In addition to providing an insurance company with valuable information regarding your property's elevation and risk of damage during a flood, a flood elevation certificate serves as documentation justifying your insurer's coverage levels and premium costs. Should your agent be audited by his or her parent company, a current copy of the flood elevation certificate will need to be provided.

In order to protect themselves against the risk of incomplete files in the event of an audit, most insurance agents require flood elevation certificates as a condition for coverage in flood zones or areas where flash floods occur frequently.

Being able to understand the relationship between insurance coverage and a flood elevation certificate will allow you to see the importance of investing in a flood elevation certificate for your property in the future.

If you'd like to learn more, contact a business that specializes in flood elevation certificates, or check it out here.