New Bern NC
Brought to you by Realtor Steve and Jana Tyson
New Berns Waterfront Expert
Continue to scroll down to learn about Federal Flood Insurence regulations and the latest updates on Flood Insurence passed by Congress.
Homeowners Insurance does not cover damage to your home caused by rising waters.
Low lying areas in New Bern and the surrounding area can be prone to flooding during a storm surge. If you are considering buying or selling waterfront property in the New Bern area, you need to hire an experienced Realtor to represent you. The Tyson Group are your waterfront
experts in the New Bern and Oriental areas.
Scroll down to learn about the federal flood insurance program. To learn more about New Bern waterfront homes and properties for sale click the link below.
New Bern Waterfront Homes and Lots for sale
Federal Flood Insurance is required if you live in a designated 100 year flood zone and you have a mortgage on your home. Why is this the case. Because prior to this requirement, the federal government was having to continually bail homeowners out when their homes were flooded. Remember, homeowners insurance does not cover rising waters. And so the Federal Government finally decided if they were going to help folks rebuild after a flood event, they were going to want something in return. That something requires homeowners building in a flood zone to elevate their homes above the 100 year flood elevation and to purchase flood insurance. This requirement certainly makes sense to me.
Click Here to view NC Flood Maps
Dr. Brian Shields
Steve and Jana Tyson were very helpful in our home buying decision. They were not at all pushy and listened to what my wife and my priorities were in looking for a waterfront house. We would strongly recommend them to any new home buyer or seller in the Craven County area.
The National Flood
Insurance Program, (NFIP), is administered by the Federal Emergency
Management Agency, (FEMA). This program makes federally backed flood
insurance available in communities that adopt and enforce floodplain
management ordinances that were put into effect to reduce future flood losses.
According to the National Flood Insurance
Program the definition of a flood is when a land mass that is normally
dry is partially or completely under water. Flooding can be caused by
one of the following:
- Overflow of inland or tidal waters.
- Rapid accumulation of surface water such as rainfall.
FEMA records indicate that 1/3 of NFIP claims come from outside of the
designated high risk flood areas. There are 10 million properties in
high risk, special flood hazard areas, yet no more than 1/4 of these
properties are covered by flood insurance. In light of this fact you may want to consider buying flood insurance even if you are not in a 100 year flood zone. Flood insurance is very reasonable if you are not in a flood zone.
The NFIP contracts with private insurance
companies to sell flood insurance. The insurance company receives a
small portion of the premium for selling the policy. When a flood claim occurs the insurance
company will call an adjustor to adjust the claim.
All NFIP policies have the same language
and will cost the same regardless of who sells the policy.
There are three kinds of NFIP policies. There are:
- Commercial policies
- Condominium policies
- Single family policies
Four types of coverage are offered with
- Building coverage
- Personal property coverage
- Debris removal coverage
- Mandatory Code up grades
Building coverage covers a list of
23 specific property items, including awnings, canopies, and ventilating
equipment and of coarse the structure itself.
Personal Property Coverage applies
to personal property within a fully enclosed insured building. Unless
you have a separate policy, business related property would not be
covered. A limit of insurance is imposed on artwork rare books, jewelry,
and furs. You should consider separate coverage for these items.
Debris Removal covers the expense
to remove the debris caused by the flood occurrence
Increased Cost of Compliance will
reimburse the insured for compliance with a state or local floodplain
management law or an ordinance affecting repair or reconstruction of a
structure suffering flood damage.
Your flood policy provide temporary
coverage for property that has been moved to another location due to the
threat of flooding. Coverage is limited and is only covered for 45 days.
There is also limited coverage for loss mitigation for such things as
sandbags, pumps, and fill dirt.
Property not Covered
There are 11 types of property that are
not insured under the flood policy. Many of these exclusions are
standard to general property coverage's and include accounts, valuable
papers, currency, motor vehicles, bill, livestock, birds, and boats.
How Flood Damages Are Valued
Flood damage is valued on either on either
replacement cost, RCV, or actual cash value, ACV. Replacement cost is
the cost to replace that part of a building that is damaged without
depreciation being deducted. To qualify for a replacement policy the
building must be a single family dwelling, must be your principle
residence, and must be insured for at least 80% of the full replacement
cost of the building.
Actual cash Value is replacement cost
value less the physical depreciation. Some building items such as
carpeting are always adjusted on an ACV basis. Personal property is
always valued at ACV.
The Bottom Line
If you live in an area prone to flooding
it is important to consider purchasing flood insurance even if you are
not required to. Contact your insurance agent to find out the important
details of flood insurance.
Steve and Jana
Thank you for all the assistance you both gave us in the sale of our waterfront home. We should have contacted you and Jana first, you both proved again that your outfit is #1 when it comes to water property sales. Merry Christmas to you and your team.
Ernie and Joyce
Craven County and New Bern Flood News
Craven County receives flood warnings from
the National Weather Service via the Emergency Broadcast System and the
NC Division of Emergency Management. That information is processed by
the county and passed on to the public via local radio, television, and
the emergency broadcast system. Craven County has adopted an emergency
Operations Plan to address the multiple hazards that threaten the
- Turn off all electrical panels, shut
off gas and water lines.
- Do not attempt to walk or drive
through flowing waters.
- Evacuate as soon as advised to do so.
Floodplain Development Permits
Development in a designated flood
hazard area requires the issuance of a local flood development permit.
These permits must be obtained before construction begins. Development
is defined as any change to any improved or unimproved real estate
including but not limited to buildings, mining, dredging, paving, or
filing. Contact the Craven County Building Inspector's office at
252 633 4987 before the start of any construction.
The NFIP requires that if the cost of
reconstruction, rehabilitation, addition, or other improvements to a
structure equals 50% of the structures market value, then the structure
must meet the same construction standards as a new structure. This would
require you to elevate the structure to raise the structure to above the
current base flood elevation.
Recent Changes to the Federal Flood Insurance Rates
On July 6, 2012, the Biggert-Waters Flood Insurance Reform Act of 2012 was signed into law. In addition to reauthorizing the National Flood Insurance Program (NFIP) through September 30, 2017, the bill brings several substantive changes to the program, including several that alter the way premium rates are calculated. In addition to raising the limit on the annual premium increases to 20% (from 10%), it includes two major changes that result in the discounted insurance rates being discontinued for all properties except Pre-FIRM primary residences that have not lost their qualification for the rate.
CHANGE 1: Pre-FIRM rates are being discontinued for all business properties and other buildings that are not considered a primary residence (to be considered a primary residence the insured or insured spouse must live in the building at least 80% of the 365 days following the policy effective date). Pre-FIRM refers to buildings built before 1975 or before the community received its first Flood Insurance Rate Map. Pre-FIRM rates for currently insured properties expire with termination of an existing policy and are not available for a new policy on the property.
Currently insured properties that no longer qualify for Pre-FIRM rates will see their premiums increase 25% per year until actuarial rates are achieved.
A Pre-FIRM primary residence will lose its qualification for Pre-FIRM rates under the following conditions and situations.
When the policy-holder intentionally let the policy lapse.
When the property is sold. A new policy cannot be written at Pre-FIRM rates.
If, after July 6, 2012, the building is improved and the cost of improvement is more than 30% of the fair market value of the building before improvements were begun.
If, after July 6, 2012, the building is substantially damaged and the cost to restore it to its pre-damaged condition is 50% of the fair market value of the building before damage occurred. For substantial damage, the "cost" is the cost to restore the building to its pre-damage condition - even if you don't plan to spend that much or to restore it fully. It also includes the cost of discretionary improvements you plan to make as part of the restoration project.
If the flood insurance claims history on the building meets one of the following criteria.
Total NFIP claims paid for flood-related building damage exceed the fair market value of the building.
The property is a severe repetitive loss (SRL) property - A single family property with 1-4 residences is an SRL property if it has incurred flood-related damage resulting in four or more claims payments for building damage that exceed $5,000 each, OR, two claims payments for building damage that together exceed the value of the insured building.
If the owner of a repetitive loss property refuses an offer of mitigation assistance (to raise or relocate the building), including an offer under the Hazard Mitigation Grant Program (HMGP)
CHANGE 2: Grandfathered rates are being discontinued. A grandfather rate was applied to buildings built in compliance with the FIRM at the time of construction, but a more recent FIRM shows the building to be at a greater risk. These buildings have been grandfathered administratively, and were allowed to keep the rate-class (flood zone and building elevation relative to BFE) that applied at the time of construction. The premiums will now increase toward actuarial rates phased in over a 5-year period, 20% of the increase being added each year. The five-year period begins on the Effective Date of the FIRM that identifies the increased risk. For example, if the actuarial rate is $1000 per year more than the subsidized rate, the premium would increase $200 per year for five years.
When will these changes take place? For those Pre-FIRM properties that properties that fall under CHANGE 1 the date of implementation is anticipated to be October 1, 2013. For those Post-FIRM properties that fall under CHANGE 2, the date of implementation is anticipated to be August 2014.
Additional information about BW-12 is located on the ASFPM Website: http://www.floods.org/ace-files/documentlibrary/2012_NFIP_Reform/2012_NFIP_Reform_Act_ASFPM_Summary_of_Contents.pdf
Note: Portions of the information contained on
this page were copied from Adjusting today magazine.
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