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#1415253 - 07/15/10 02:14 PM Flood Zone Discrepancy
Kelsey D Offline
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Posts: 516
Ohio
I apologize if this has alrady been asked, but I can't find the answer in another thread. We have a flood determination that says the property is in zone A. The insurance agent says that the house is in zone X and a portion of the property is in zone A. How is the policy required to be written?
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#1415288 - 07/15/10 02:52 PM Re: Flood Zone Discrepancy Kelsey D
Dani York, CRCM Offline
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Dani York, CRCM
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TN
First thing I would do is go to your flood determination vendor and ask for a recheck to determina if the actual building ins in the flood zone. They may ask you to provide a survey or a GIS layout of where the buildings are located. Some vendors deliver automated hits based solely on address, not actual building location. You may find after a manual recheck of the building location that a portion of the land is in zone A but the building is in zone X.

Or you may find that the building itself is in zone A. In that case, you should go back to the insurance agent and have them reconcile their determination. If my determination came back showing the building in zone A after a manual re-check, I would require insurance written on zone A.
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#1415292 - 07/15/10 02:56 PM Re: Flood Zone Discrepancy Kelsey D
elcinoca Offline
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Elizabeth City, NC

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#1440644 - 09/09/10 02:27 PM Re: Flood Zone Discrepancy elcinoca
morirse de risa Offline
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Posts: 238
Midwest
Someone please help - I'm so confused on this situation!

When reviewing new flood loans I noticed we showed a loan in zone A but the insurance said zone C. Turns out the customer has been paying for this flood insurance in zone C for 11 years with no problems. We just notice issue when we refinanced. LPS Flood tells us the property is in zone A - even after I request a recheck.

There is an address issue with the property. When 911 addresses were redone they used the wrong door and therefore customer's address is Market Street (which is zone A). Insurance agent says it should be State Street (which is zone C). Commissioner agreed and therefore insurance agent is using State Street address. I say it doesn't matter what street address is used if the flood maps say the property is in zone A, then zone A should be used.

Customer and insurance agent are upset. Insurance agent says they will insure the property for zone C - but guarantee they will cover all claims. They won't put zone A on the policy b/c that will triple the customer's premium. I say it needs to match. Insurance agent argues that if they say they will cover any flood claims then why does the policy need to say zone A?

What is my next step?

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#1440666 - 09/09/10 02:53 PM Re: Flood Zone Discrepancy morirse de risa
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
If the borrower has been paying flood insurance for 11 years the property may qualify for grandfathering. Review the grandfathering rules in the Mandatory Purchase Guidelines. If the property does qualify for grandfathering the policy can be left as Zone C.



Quote:
Insurance agent argues that if they say they will cover any flood claims then why does the policy need to say zone A?


Unless the agent gives you something in writing guaranteed by the insurance company his word isn't worth squat.

The determination should be based on the legal description of the property if there is an address discrepancy.

If the agent refuses to change the policy, if A is the correct zone, then you should report him to FEMA and to your state's Dept. of Ins. Also show him the following letter.

http://bsa.nfipstat.com/wyobull/2008/w-08021.pdf
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#1440688 - 09/09/10 03:07 PM Re: Flood Zone Discrepancy Dan Persfull
morirse de risa Offline
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Joined: Feb 2009
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Midwest
For grandfathering - the property must have been located in zone C when the building was constructed and then there was a new map completed at a later time showing it was in zone A. Is this correct?

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#1440696 - 09/09/10 03:12 PM Re: Flood Zone Discrepancy Dan Persfull
wanted Offline
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United States
Can someone explain about the grandfathering rules?
How much evidence is needed to grandfather?
Who is responsible for determining if qualifies to be grandfathered?

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#1440714 - 09/09/10 03:24 PM Re: Flood Zone Discrepancy wanted
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
http://www.fema.gov/library/file?type=pu...50-000bdba87d5b



Quote:
For grandfathering - the property must have been located in zone C when the building was constructed and then there was a new map completed at a later time showing it was in zone A. Is this correct?


Correct. Page 13.

Quote:
How much evidence is needed to grandfather?
Who is responsible for determining if qualifies to be grandfathered?


Page 13.
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#1441447 - 09/10/10 05:39 PM Re: Flood Zone Discrepancy Dan Persfull
morirse de risa Offline
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Joined: Feb 2009
Posts: 238
Midwest
Turns out we don't have a grandfathering issue.

I'm now being told by the flood expert at the flood insurance company that FEMA has said that if there is a zone discrepancy that they are allowed to go back to the community for last word on determination of the zone. Has anyone dealt with this before?

I see the FEMA letter on using the riskiest zone if there is a discrepancy, so now would what the community says supercede this?

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#1441473 - 09/10/10 06:01 PM Re: Flood Zone Discrepancy morirse de risa
Dani York, CRCM Offline
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Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Actually I'm pretty sure FEMA has the last word on what the correct zone is....

Maybe file for a letter of determination review through FEMA. Though in the mean you must still require adequate insurance including correct zone.
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#1441535 - 09/10/10 06:43 PM Re: Flood Zone Discrepancy Dani York, CRCM
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 46,957
Bloomington, IN

Quote:
I'm now being told by the flood expert at the flood insurance company that FEMA has said that if there is a zone discrepancy that they are allowed to go back to the community for last word on determination of the zone. Has anyone dealt with this before?


Dani it correct. FEMA issue the maps and they have the last word.

Have this so called expert produce a FEMA bulletin superseding the above bulletin.

You need to start your 45 day force place procedures if you haven't already. If the property is insured in the wrong zone then you are not adequately covered.
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