Private Flood Insurance Market In South Carolina
Here is the deal…
OK, so we have a private market for flood insurance that is written through Lloyd’s of London and the rates are the rates for every property in A zones and V zones respectively. It is not going to be the best option for some risks, as just because a home is pre-firm, it doesn’t necessarily mean it cannot qualify for post-firm rates (contact me if you have questions on this). However, more times than not, and in the severe cases, this is going to be a very viable option for many pre-firm properties that are going to experience major rate increases if sold.
So what are the rates?
- Pre-firm, AE Zone in Charleston County- $250,000 building only coverage, Premium of $3,255 with a $5,000 deductible (only deductible option). This is the rate for all A Zone flood policies at this coverage limit…if they want contents, it will be higher.
- Pre-firm, V Zone in Charleston County- $250,000 building only coverage, Premium of $9,011 with a $5,000 deductible (only deductible option)
I can rate up any limit up to $250,000 in-house for you and you clients. So think over the last few months if there were properties your clients liked but the new flood insurance was going to be astronomical, please revisit if your client is still interested. If you are trying to sell a property, same thing.
One other piece of advise, there is only the one deductible option of $5,000. Many lenders require no more than a $1,000 or maybe a $2,000 deductible, so this will need to be discussed with them upfront. Also make sure that it is OK to go outside of the NFIP program. In my discussions with the program director, they have had no issues from lenders as it helps them get deals done too but this conversation needs to be had upfront.
Let us know how we can help you, as a buyer or seller of real estate, realtors, mortgage brokers, and others navigate through this mess.
You can contact Andrew directly with the below contact info:
Andrew Muller, CIC, AAI, PRIS
Private Client Insurance Advisor and Flood Insurance Guru