Special Flood Insurance Supplement Savannah is a great place to live. Many residents love it because it is on the coast and there is water everywhere. But sometimes that can cause your home's value to go down? Why? Some homes sit in mandatory flood zones, meaning you have to carry flood insurance. And put simply, if a buyer has to pay hundreds or even thousands a year for flood insurance that affects how much house they can afford or are willing to pay for. Why Your Flood Zone May Change But relief is on the way for many of you. Thanks to some changes in the local flood map some homeowners, buyers, and sellers are in for a pleasant surprise. Your need for flood insurance could be reduced or eliminated completely. In February of 2018, FEMA gave the City of Savannah the Letter of Final Determination (LFD). This updated map takes effect on August 16, 2018. At that point, the new map can be used for flood determinations. So if your property is recategorized to another flood zone, you could potentially save money on your flood insurance. Why Flood Insurance is Important Federal law requires you to carry NFIP flood insurance on certain properties located in a flood hazard zone to get federal aid or loans from federally insured lenders. So if you plan to apply for, raise, extend or renew a federally insured loan (including a second mortgage, home equity loan or refinancing) you will have to prove you have flood insurance. What’s the NFIP? In 1968, Congress created the NFIP as a new way to deal with floods and flood damage. Up to that point, they had relied on constructing levees and providing federal disaster assistance. But now, with the NFIP, FEMA offers federally backed flood insurance to property owners and tenants in “participating communities.” These communities have agreed to regulate the use of land that’s likely to flood to decrease future flood-related losses. Any property in a participating community can receive NFIP insurance no matter what (Continued on Page 10) 7
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