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Flood Insurance and FEMA with real estate sales:

Flood Insurance and FEMA with real estate sales:

    • Being a KNOWLEDGEABLE BUYER OR SELLER is important when selling Missouri real estate.
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    • Have you asked yourself "Why the Sudden Increase in Flood Insurance Rates?"  If so, here are some points from Shelley Clark from Cardinal Surveying.
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    • In 2012 the Biggert-Waters law was passed which provided a stable 5 year plan to continue flood insurance.  The plan mandated that the National Flood Insurance Program charge actuarial rates for the insurance, which has resulted in a large rate increase for some consumers.  The Biggert-Waters law mandated an "affordability study" be performed to see how these increases would affect consumers.  The study has yet to be performed in its entirety, yet insurance rates are increasing, some more than doubling in cost this year alone.
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    • Find more info here!
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    • NAR has put out a call to action to voice the concerns associated with the premium increases and the adverse effect it will have on communities and home owners affected by flood zones.  Legislation is pending in both the House and Senate and would delay the rate increases for four years.
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    • For additional information or questions regarding flood zones or elevation certificates, please contact our office or visit www.fema.gov.
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    • We offer educational classes regarding flood zones. Contact our office for information about this class and other classes available.
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    • - Shelly Clark, LSIT, Owner of Cardinal Surveying St Charles County Missouri
    • Flood Insurance and Missouri Real Estate what questions to ask
    • Written By Donna Joerling (Owner and Broker). Created on 01/28/2014.
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    • Talk with your agent about the things to look out for when you are purchasing property that touches a body of water, such as a creek, a river, a lake and more.  If there is water, you could be in a flood zone.  
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    • Flood Insurance: What's The LawFEMA's National Flood Insurance Program issues between 90 to 99 percent of all the United States' residential flood policies. Under federal law, flood insurance is mandatory when buying or building a residence in a high-risk flood area. 

  • If a property is not located in a high-risk area federal law does not require flood insurance. Lenders may still require flood insurance for properties in moderate-to-low risk areas. After all, one-in-five claims comes from these moderate-to-low risk areas. 

    When FEMA revises flood zone maps, properties inside newly designated flood zones are required to purchase flood insurance. Lenders will notify prospective homeowners that flood insurance will now be required as a condition of closing the mortgage. 

    Flood zone maps and more information for homeowners is available from FEMA at 
    msc.fema.gov.

The Joerling Group

314.808.1712