The most important fact about flood insurance is that homeowners insurance does not provide it. We all know about the devastating floods and multiple "hundred-year" storms which have hit parts of New Hampshire in just the past few years. The flooding in Alstead and the rerouting of the Suncook River are just two of the most notable recent flooding events in New Hampshire. We’ve dealt with many clients’ properties affected by flooding in both designated flood zones, and areas previously thought to be safe from rising waters.
Most areas in designated flood zones are near the large and obvious sources of flooding: large bodies of water such as the ocean, lakes, rivers and streams. However, as you've probably seen in your town, flooding can happen in a much more localized manner from a stationary thunderstorm, a blocked culvert, or a very small brook swollen by snowmelt and rainwater.
If you have a mortgage, living in a designated flood zone area dictates the purchase of flood insurance; however, businesses and homeowners can purchase flood insurance whether in a high-risk flood area or not. Everyone should consider flood insurance. Premiums for properties outside high-risk areas are quite reasonable, and, should the flood designation for your property ever change, with continuous coverage you are grandfathered in and can keep your existing flood policy based on the lower rate! (You may even be able to transfer the policy to a new owner.) Davis & Towle has partnered with G.C. Engineering of Belmont, New Hampshire to provide accurate flood determinations for our flood insurance policies. And when a discrepancy on the flood map is suspected, G.C. Engineering can create an elevation certificate and is authorized to produce an electronic letter of map amendment (E-LOMA). This E-LOMA capability means they may be able to correct the error in time for your closing, saving you money out-of-pocket.
Flood policies are written via the National Flood Insurance Program (NFIP). NFIP was established to help communities who voluntarily participate by “adopting and enforcing floodplain management ordinances to reduce future flood damage.” It is to the advantage of both homeowners and communities to become a part of this program, or at least to purchase flood insurance. In the event of a flood, losses will be minimized and assets preserved. You can talk to us about whether your community participates in the NFIP, or to obtain a free flood insurance quote.