Additional insurance policies are a major and important investment for property owners. Whether properties exist in flood-prone or seismically active areas of the country, taking out supplementary policies to cover natural disasters isn't something to be entered into casually.
Coastal homeowners in South Carolina will soon be investing more in coverage for flooding. The Homeowners Flood Insurance Affordability Act stands to raise premiums by 18 percent.
"Homes that were built before the flood maps they're going to take the biggest hit with that 25 percent increase they're going to see a huge hit but the good news is it is limiting the amount of rate increase after that," says Kevin Whitley, a Chalk and Gibbs insurance agent.
Because flood insurance can be costly, determining the best valuation for covered properties is critical to ensuring that policies are sufficient. When inaccurate or outdated valuations remain intact, settlements in the event of a claim don't reflect the actual replacement value of a home or commercial property. Updating valuations on a regular basis and ensuring that replacement values indicate the most recent changes or additions can ensure that policyholders receive the correct amount to restore or replace a property.
The hike in premiums is designed to help alleviate the $24 billion flood insurance debt currently shouldered by the Federal Emergency Management Agency (FEMA). In addition to the premium increases, homeowners can expect surcharges to account for primary and secondary homes and businesses.
At e2Value, our suite of services provide current and consistent valuations for professionals in the insurance industry. With better valuations, those professionals can deliver the best quality of service to clients and make sure that policies are as accurate as possible.