We were recently informed four properties securing loans are now considered in a flood zone. We sent letters and the borrowers have attempted to obtain flood insurance. Two of them told us they are unable to get flood insurance without a Elevation Certificate. We haven't had to obtain an EC before and are not sure how to proceed. Where do we get an Elevation Certificate? Do we need to force place insurance (the 45 days is up) until we are able to obtain one and have the customer get their own insurance?
You may check with the City Engineering department. All post-firm buildings should have a elevation certificate on file.
If these are pre-firm buildings then an elevation certificate is optional. However, the premiums will be cheaper if an elevation certificate is provided. But the saving may not offset the cost of the survey. It's the insureds option.
Pre-FIRM structures rated under Post-FIRM rates Pre-FIRM construction can be elevation rated using the Post-FIRM Elevation Certificate rates, which are more favorable rates if the lowest floor of the building is at or above the BFE for the community. In most cases, the lowest floor level of a Pre-FIRM building is below the BFE, and it would not benefit the insured to pay the cost for an Elevation Certificate in an attempt to secure a lower rate. The decision to obtain an Elevation Certificate and to request Post-FIRM rating of a Pre-FIRM building is an option of the insured.
The opinions expressed are mine and they are not to be taken as legal advice.