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#2257265 - 07/27/21 06:06 PM Flood Zone X50/X50???
TeamComply Offline
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We received a new flood policy that lists a flood zone as "X50/X50" when our determination indicates the property is in zone AE. When inquiring with the insurance agent about this discrepancy, he indicates the rating of X50/X50 does not change the FEMA flood zone that the building is in and that it is an internal metric the carrier uses to rate flood risk. Has anyone heard of this or seen this flood zone listed? Should we continue to work to get zone changed on the policy or should this be considered acceptable? I know there are proposed rules regarding flood zone discrepancies, but it is my understand we are currently still expected to address/work to get these resolved...but I've never seen X50/X50, or been give this explanation before. Thoughts??

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Flood Compliance
#2257266 - 07/27/21 06:17 PM Re: Flood Zone X50/X50??? TeamComply
rlcarey Offline
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rlcarey
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Galveston, TX
Is this a private policy?
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#2257269 - 07/27/21 06:45 PM Re: Flood Zone X50/X50??? rlcarey
TeamComply Offline
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Yes, it is a private policy.

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#2257271 - 07/27/21 06:51 PM Re: Flood Zone X50/X50??? TeamComply
rlcarey Offline
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rlcarey
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Galveston, TX
Then any flood zone is a moot point. NFIP flood zones are a rating system for NFIP policies only. A private insurer can rate their policy anyway they would like.
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#2257273 - 07/27/21 06:54 PM Re: Flood Zone X50/X50??? rlcarey
TeamComply Offline
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Ok, good to know. Thanks rlcarey!

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#2257275 - 07/27/21 07:04 PM Re: Flood Zone X50/X50??? rlcarey
TeamComply Offline
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Is there any guidance or resource that states this specifically, that flood zone designation on policy is for NFIP policies only?

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#2257276 - 07/27/21 07:14 PM Re: Flood Zone X50/X50??? TeamComply
rlcarey Offline
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rlcarey
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Galveston, TX
If you refer to the regulations for the acceptance of a private policy, you will see no mention as to how the policy is rated or any mention of flood zones. As long as the policy meets all other regulatory requirements for the acceptance of a private policy and it is written for the correct property, your buildings would be covered. So, no, there is nothing that would say that specifically.

Plus as you noted, even on an NFIP policy, any requirement to refer to the flood zone on the NFIP policy is going to go away.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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