Category Archives: Insurances For Home

Decrease home insurance cost Charleston, SC

The amount of the incentive varies according to risk associated with the geographical location, building materials, and construction methods of each home as well as actuarial data from individual insurance companies. (Discounts apply only to the hurricane-wind portion of your policy; contact your insurance agency for more information.)

You may qualify for a DISCOUNT ON YOUR HOMEOWNERS INSURANCE. To qualify you must submit an inspection from a state certified wind mitigation inspector, licensed contractor, building inspector, architect, or engineer, legally validating and identifying the existence of any wind mitigation measures, such as:

  1. Roof Shape
  2. Roof Deck Attachment
  3. Roof Covering
  4. Roof to Wall Connectors
  5. Window Protection
  6. Door Protection
  7. Secondary Water Resistance (barrier)
  8. YEAR BUILT
  9. Updated Electrical system
  10. Secured and improved foundation
  11. Replace with new Roof

For Flood Insurance – Newer foudation Vents (such as smartvents.com)

If you have a hip roofpermanently installed approved shutters for windows and doors or any of the above credits you may qualify for discounts on the wind portion of your insurance policy.

Typical Construction Features that Reduce Wind Damage and Loss
Info Gathered From: American Property Consultants

Precision Construction is Charleston’s best General Contractor

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Facts about Flood Insurance

We all know the chances of a flood are usually slim, but if it does happen the effects can be devistating. So making sure you are covered correctly will help ease this possibility.

To see if your home is in a flood zone click HERE.

Flood_InsuranceIf you don’t carry adequate flood insurance and you have a mortgage your lender will give you what is called FORCED PLACED insurance. Which is usually much more expensive then you would find on your own.

Secondly, flood insurance is flood insurance. There is NO shopping around for flood insurance. FEMA regulates flood insurance and its costs. Agents simply are the distributors of the policies. However, your insurance could vary in cost IF and only if the agent providing you the flood insurance quote makes a mistake in inputting the information therefore, affecting the rating adversely.

Below are the lists of things needed to get adequate flood insurance.

1.) An up to date, signed survey, with an elevation certification from a licensed professional (engineer, surveyor, architect) on the most recent FEMA form dated as of Jan 1, 2007.

2.) 2 dated photographs of the home both front and back within 90 days of requesting coverage.

Definitions of FEMA Flood Zone Designations

ZONE

DESCRIPTION

B, C, and X

Areas outside the 1-percent annual chance floodplain, areas of 1% annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1% annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1% annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. Insurance purchase is NOT required in these zones.

ZONE

DESCRIPTION

A

Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. Because detailed analyses are not performed for such areas; no depths or base flood elevations are shown within these zones.

AE, A1-A30

Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. In most instances, base flood elevations derived from detailed analyses are shown at selected intervals within these zones.

AH

Areas with a 1% annual chance of shallow flooding, usually in the form of a pond, with an average depth ranging from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.

AO

River or stream flood hazard areas, and areas with a 1% or greater chance of shallow flooding each year, usually in the form of sheet flow, with an average depth ranging from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Average flood depths derived from detailed analyses are shown within these zones.

AR

Areas with a temporarily increased flood risk due to the building or restoration of a flood control system (such as a levee or a dam). Mandatory flood insurance purchase requirements will apply, but rates will not exceed the rates for unnumbered A zones if the structure is built or restored in compliance with Zone AR floodplain management regulations.

A99

Areas with a 1% annual chance of flooding that will be protected by a Federal flood control system where construction has reached specified legal requirements. No depths or base flood elevations are shown within these zones.
High Risk – Coastal Areas
In communities that participate in the NFIP,

mandatory flood insurance purchase

requirements apply to all of these zones:

ZONE

DESCRIPTION

V

Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. No base flood elevations are shown within these zones.

VE, V1 – 30

Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.

Understanding SC Wind Insurance

Wind Damage

I must admit living in Charleston, SC is very nice, but lets face it living in a coastal city can be very expensive as compared to living inland. There are inherent risks to living in a coastal town and the biggest one is the risk of a hurricane and who wants to lose their home? No one. When hurricane Katrina hit LA, State Farm lost $$ billons of collected premium over 58 years in just 8 short hours. Truth is insurance companies do not ever want to pay out from a catastrophe, but they have to and they know it. SO in order to compensate for an inevitable occurrence of a hurricane the only thing they can do is increase premiums, or have higher premiums to stuff their pockets in the event of a loss. A dollar and eleven cents ($1.11) is paid out in wind claims for every dollar ($1.00) collected in premium.

Most companies that write in the eastern coast of the US have an allotted amount of policies they are allowed to write as determined by their powers that be. If they have exceeded that amount and/or feel they have more policies then is safe for their solvency; the only way they can reduce their exposure is to increase your premiums and hope you go elsewhere, or cancel you.

Luckily South Carolina has been one of the smarter states by carefully devising a plan to ensure the coastal residents have sufficient hurricane coverage. The SC Dept of Insurance has worked tirelessly to devise a system for keeping adequate carriers interested in offering insurance in the state.

There are two types of coastal insurance carriers. Those who include wind coverage and those who don’t, and the truth is that there are very few insurance companies that care to write insurance on the coast and include wind coverage. Wind coverage alone will make up 80%+ of your premium expense.

If your home is in what’s called the “wind zone” then you will be required to specifically have wind coverage. Just because your home isn’t in the “zone” doesn’t mean you are not out of harms way when a hurricane comes. This just means that you won’t have to have a carrier that offers wind coverage specifically and your traditional hazard policy will coverage the damages, however usually with a higher deductible.

If your home or business is in the wind zone then either you have to find a carrier that offers wind coverage OR you will have to get separate coverage from the SC Wind & Hail Underwriting Association. A non-state agency but a separate organization designed by the state comprised of insurance companies that write in SC that contribute a portion of their earnings to a “pool” of money used to cover the residents that reside in the coastal areas. The SC Wind Association is even further insured by many domestic, and international re-insurance companies in the event it goes insolvent and is unable to cover all filed claims.

When buying a home you need to ask your real estate agent to see if the homes they are showing you are in one of the two wind zones, because it could dramatically increase your monthly expenses. Also, you should ask if the home is in a flood zone, because that too is an additional coverage separate from traditional hazard or home owner’s coverage.

All Things Real Estate

Welcome to my blog,

james Schiller

I hope my blog finds you well, and becomes a helpful resource in your quest for real estate expertise. This blog will offer all the news and information needed regarding real estate, mortgage financing, and insurance news your heart could desire. SO, please enjoy and I look forward to hearing from you and helping you with any and everything real estate related. You may instant message me from any of the platforms you may use, but if I am not available that day just leave me message and I will gladly return it. 🙂

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