How do I get out of paying flood insurance? It's killing me!?

Question

I'm in a flood zone by maybe 20 feet. The neighbor across the street lives closer to the lake and he says he doesn't pay it. My home insurance is $1,200.00 a year and flood insurance is $1,800.00 add to that. My house is on a slab. Thank you.

Answer 1

Your neighbor across the street may not have a loan on his/her house.  It is usually the lender that requires flood insurance and they won't allow you to drop it.

Too bad you can't simply give your 20 foot of flood zone to the county.  lol

The only other option you really have is to sell and move away.  I personally, wouldn't want to stay living in a flood zone.

Good luck to you.

Answer 2

Um, you'll need to speak with both your agent and your lender.  Lenders require flood insurance to place a loan on the home.  However, they do not require flood insurance to keep a mortgage.  You could cancel, but if there were any flood issues, you would be in deep doo doo.

The flood plain is normally drafted by the city, county in which you reside.  You could always ask for another survey to be completed, but this will cost you some money to do so.  This in fact will determine whether you are or are not located on a flood plain.

Just because the neighbor tells you that he doesn't pay it doesn't mean that he is not located within the flood zone.

Do some research.  It will take some time, but could end up saving you thousands in the long run.

Answer 3

You pay your house off, or move.  

Likely your neighbor doesn't have a mortgage.  Or his insurance is escrowed, and he hasn't noticed it's in his monthly payments along with taxes.  Or he's had his loan, for a long time, since way before that area was a flood zone.

You can hire a survey company to do an elevation certificate, and "maybe" that will get you out of it . . .but maybe it won't.  And it will cost you about $750 for the elevation survey.

Answer 4

Call an engineer or surveyor.  See if you can get an elevation certificate.  The cost can be $250-$500 depending on where you live.  The elevation certificate will tell what the elevation is of your lowest floor (first floor in your case since you are on a slab) & how it compares with the base flood elevation.  If you are ABOVE the base flood elevation, you will probably save money on your flood insurance.  If you are below, you won't.  One of my insureds saved OVER $700 per year by being 2.8 ft above the base flood elevation (BFE).  Her insurance went from over $1100 to just over $300 per year.  Her surveyor cost her $250.  For her, it was money well invested.

Of course, you are taking a chance that you are below the BFE, in which case, what you are paying will be what you continue to pay.

Raising your deductible can help a little, but it is not much.

It is a VERY good idea to have flood insurance even if you do not have a mortgage (& even if you are not in a flood zone), as others have mentioned, just look at the midwest flooding, MILES away from water.  Flood waters do not know where humans decided where the flood zones are & are not & where the lines are.

Answer 5

I have no clue where you live, but if you haven't already done so check out the pictures of IA, MN, WI & IL. That should change your attitude about dropping the flood coverage. That $1800 could save you from paying the entire tab to rebuild your house.

My daughter lives in WI and even though she lives nowhere near a flood plain or a body of water she lost everything. Trust me she would gladly pay the $1800 to get her house and stuff back.

After seeing what has happened here in the Midwest, I respectfully suggest you reconsider dropping the coverage. Let your neighbor be the one paying to replace his house out of his pocket.

Either way good luck.

Answer 6

need to talk with your agent....

Answer 7

Are you seeing the news in the middle of America?  Flooding all over.  Sell and buy a place too high to be troubled in a flood.

Answer 8

Get a survey done and see if your lowest adjacent grade is below at or above the base flood elevation.  If it is, submit to FEMA for a letter of map amendment.  If they approve it, they will waive the federal requirement BUT your mortgage co many still require it to protect their investment.  

OR pay off your mortgage!  Then only you can decide to protect to your house or not!  That is the only guaranteed way to not pay it.

Answer 9

Well most people say that you won't flood but look what's happening in Illinois, in Iowa, in the ENTIREEEEE midwest... im sure a lot of those people if not maybe most thought the same thing and now they're S-O-L... i would keep it.. $1200/yr is nothing... look at the rates in FL... now thoseeee are $$$$... $250/mo to keep your house safe isn't bad... maybe you can raise the deductible to make the payments lower.