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#2071567 - 03/30/16 01:54 PM Flood property/buildings prior to 1974
mdog76 Offline
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Joined: Jan 2007
Posts: 645
I'm in the process of researching this as I have not heard of this issue. Is there an exemption out there of some kind for buildings that where constructed prior to 1974 or does that ring a bell with anyone? My loan officer seems to think that it has to do with obtaining an elevation certificate?

Thanks.

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Flood Compliance
#2071580 - 03/30/16 02:18 PM Re: Flood property/buildings prior to 1974 mdog76
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If the building has had no major renovations after 12/31/74 they are a pre-FIRM building and are eligible for certain rate successions. I haven't researched the details for quite sometime but if you search FEMA's Web site you should find some information.

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#2071585 - 03/30/16 02:30 PM Re: Flood property/buildings prior to 1974 mdog76
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Dan is correct about this likely being a "pre-FIRM" building. That stands for Flood Insurance Rate Map. However, that doesn't exempt the building or the loan from you requiring flood insurance on it. If it is pre-FIRM, there's a different deductible and premium.
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#2071587 - 03/30/16 02:36 PM Re: Flood property/buildings prior to 1974 mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
Thank you all. I was pretty sure it didn't exclude the bank from getting insurance on the property. From what I have found (and I understand it correctly) the buildings built in 1974 would be grandfathered with existing rates as long as they have had existing coverage from the time of the initial Rate Map correct?

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#2071847 - 03/31/16 04:07 PM Re: Flood property/buildings prior to 1974 mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
The premium on the properties I'm asking about came in at an unreasonable rate in our opinion ($13,000)! Are you able to request a quote directly from FEMA and obtain a policy directly from FEMA? If so, how you start that process?

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#2071871 - 03/31/16 04:45 PM Re: Flood property/buildings prior to 1974 mdog76
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,222
Galveston, TX
Unless this is private insurance (not through a WYO that sells NFIP insurance), just have the borrower contact one of the WYO agents in your area. All NFIP policies are priced the same regardless what insurance agency sell it.
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