The Federal Emergency Management Agency (FEMA) is using advancements in digital mapping technology to redefine the country’s flood zones. As a result, many homeowners are being required to buy flood insurance for the first time, while others who have had coverage for years are being cleared to drop their flood policies altogether.

The changes are occurring as part of a multiyear plan by FEMA to digitize its Flood Insurance Rate Maps to make them more accurate. The process began in 2003 and FEMA is projecting that 65% of the land in the country (92% of the population) will be covered by the new high-tech maps by 2010. According to FEMA officials, the accuracy of the new mapping technology has vastly improved and allows for more precise information to be used in determining special flood-hazard areas.

Tags: FEMA, homeowner insurance, mortgages, real estate

According to their survey on the most expensive states for homeowners insurance costs, Forbes magazine ranks Florida number six in the country. The survey is based on the National Association of Insurance Commissioners most recent study of insurance premiums, drawn on 2005 data due to lags in state reporting procedures.

Multiple factors are used in the analysis, not necessarily just the threat of a single disaster. Hurricanes, tornados, and floods make the headlines, but hail and wind cause more damage on average. Building costs are another important consideration. Insurance typically pays out at replacement cost (the amount it would take in labor and materials to replace/rebuild the property) and the rising costs of such items are eventually reflected in the costs an insurance company must pay for repairs. Accordingly, states where Mother Nature is usually unkind tend to have the highest average annual insurance costs.

Tags: Florida, homeowner insurance

Another hurricane season is set to officially begin this weekend and it is important for Florida Gulf Coast residents to pay attention and be prepared. With two recent years of above-average storm forecasts and below-average actual storms, many residents may feel confused about what to expect this year. Government forecasters officially predict six to nine hurricanes in 2008, with up to five becoming major storms. They also say the chances for an above-average season are about 65 percent; the chances for a normal season about 25 percent; and the chances for a slow season about 10 percent. Unfortunately, for many Floridians, the forecasted outlook seems like nothing more than a guess.

Tags: homeowner insurance, hurricane preparedness

Now is the time to be sure and recommend flood insurance to your new home buyers in Florida. It takes 30 days for a new policy to become effective, and signing up early is important in order to make sure their coverage is in effect for the start of Florida’s hurricane season on June 1st.

Another thing to remember is that certain exemptions also exist to the 30 day waiting period. A policy is immediately effective if a lender requires it in connection with a new loan or loan change; if additional insurance is required because of a map change; if a lender suddenly decides that a property does indeed require flood insurance; and if a higher level of coverage is added when a policy is renewed. For more information on flood insurance rules, go to: How to Purchase Flood Insurance at FloodSmart.gov.

Tags: homeowner insurance, hurricane preparedness