Flood Insurance For Your House Money Saving Tips


hello everybody this is mark Schreier from
Century 21 American Homes Real Estate and today’s video topic is flood
insurance it’s ironic that seven years ago Hurricane sandy actually hit Long
Island I get one of those reminder text messages actually from my facebook page
if something I posted so seven years ago we got hit with the so called hundred
year storm so I thought it’d be good to bring on an expert who is an expert in
selling flood insurance to give us some insight about the process and his name
is Robert Zabbia Robert can you explain a little about your background and then
we’ll get into our questions okay my Rob Zabbia I own the Zabbia insurance
Agency we I’m the second generation with with my dad with Allstate and we my dad
was actually took over from his uncle so we have four generations in the
insurance business so we’ve been doing this quite a while we had a lot of cut
we had over 800 customers affected by Sandy with flood claims and you know so
we learned a lot then do they see you until you use it you don’t really know
exactly what’s in there because there’s a lot of things that you know it’s in
the policy it’s on paper but when you see it in action it’s a little bit
different than than what you learn so it was a big learning curve that was thrown
at us because it was so many different scenarios that never happened before so
until you actually see it it’s a little bit difficult
all right thanks Rob I know this is definitely a significant topic for a lot
of homeowners on Long Island or anybody that lives on an island because water
surrounded by water on all sides on Long Island we have the North Shore of the
South Shore I live in the middle of the island so I’m not affected that much but
I want the first question I have and I have five questions and the last
question is going to be a question on how to save money on flood insurance
tips that you can give homeowners that are buying in in a flood zone what they
can do to possibly save some money maybe while they’re there they’ve already
bought the flood insurance or even before they go through the process
things that they can look for so stay tuned for that at the latter part of
this video question number one does basically does my community participate
– in the National Flood Insurance Program the acronym NFIP can you explain
a little about what that means I have no clue what does NFIB I know I just gave
the acronym but for those people don’t know what that means
what’s it all about all right so the National Flood Insurance Program is run
by FEMA so it’s a part of FEMA program and it was put in place because all the
private companies pulled out of flood insurance so people couldn’t sell homes
that were near the water unless they had the flood insurance so the government
stepped in and created the NFIP from FEMA and most communities I think I
don’t know of any communities on Long Island that don’t participate they’re
having a couple of them that the government has told them they had to
make changes otherwise they we’re gonna fold their participation but they you
know a lot of them have brought up you know their sewer systems or drainage
things like that in order to participate in the Flood Insurance Program and the
way you find out is that you know basically if you call an insurance agent
they can tell you whether you know you qualify or not and get it both and if
you’re buying a home you know you can ask the current homeowners if they have
flood insurance because it’s a good idea to take over whatever they have right
actually one of my recent deals the homeowners saved a significant amount of
money by being able to take over the flood insurance that was existing on the
house already they were getting quotes that were crazy very expensive and when
they found out that they were able to they were able to buy for the current
policy keep it transfer it we’re very happy to find out the amount of money
they can save since that’s there a very good tip before we go any further I just
wanna do some basic housekeeping YouTube 101 I guess you would say if you’re
new to the channel definitely thank you to stop and by please remember to
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101 everything you need to know about buying selling residential or real estate
and with that being said let’s go on to question number two how long what is a
flood zone you how do you know if you’re in a flood zone in general like where
can I find out that information? Well you can go on to the the FEMA website
National Flood Insurance website and plug in the address if you want to do it
on your own or you can call an insurance agent or broker and they’ll be able to
do a search for you a lot of times the banks will do it and because they the
banks will require the add flood insurance if you’re at a higher risk
zone but it’s a good idea before you sign a contract to check on it yourself
get a quote for the home insurance and flood insurance because feeling
especially the house close to the water it might just because the car like you
you had a great example your client was able to save with the flood insurance
they can’t necessarily do that with the home insurance so it might make them
house out of reach so it’s a good idea to just look before they sign the
contract if they’re buying and if you’re selling you should also don’t don’t
cancel the flood insurance because your mortgage is paid off because of that
fact that makes your house way more marketable if you can get skip somebody
the existing flood policy and then that grandfathered in and they could take
over that much lower rate and somebody who would be starting scratch that’s
actually a great point and when you’re shopping for a home make sure you find
out what their current flood insurance premiums are because it can save you a
lot of money in the long run great tip question number three how long does it
take for my insurance to go into effect I’m buying a house I put the money down
you know pay the premium sign the papers with the flood insurance broker in this
case how long would it take for that policy to be in effect so I know I’m
protected well a home purchase and a refinance is the only time a flood
insurance policy can be made effective immediately although wise there’s a
30-day waiting period because they just think about it when everybody knew sandy
was coming up everybody wanted to buy a policy that you know that weekend but
it’s a 30-day waiting period for that reason there’s a lot of people weighed
by the policy right before the storm and then they’ll you know file a claim and
there’s no money coming in in order to pay for the claim so yeah if you’re
buying a house it’ll go into effect right away but like I said it’s a good
idea to get the quotes and get it all set up way ahead of time because we have
seen deals fall apart before something changed right before the closing so
don’t put it off till you know it the day before to get the flood insurance
great great point now everybody who is definitely using it utilizing a mortgage
to buy a house is required to have home insurance the banks will give them a
mortgage without but a lot of people or some people pay cash and what is covered
and what is not covered with flood insurance because homeowners insurance
covers a whole array of things some people some things not covered and I
know like if you have water backup and how do I know this because I own a house
and that this issue and they say unless you have a certain writer you’re not
getting covered for water backing up if it comes through whatever magical way it
came through and the average person is not an insurance guy does not understand
this so what is not covered let’s start with that from a flood insurance policy
all right so what’s not covered from flood insurance is any content in your
basement so they’ll cover in the basement they’ll
cover the the walls they’ll cover the structure they’ll cover the heating
system the air conditioning if you have a freezer refrigerator washer/dryer
those things will be covered but if you have a finished basement the furniture
and all of that wouldn’t be covered by the flood insurance the and they’ll only
cover up to the flood damage on the walls so just imagine you have six
inches of water in your in your basement they’re gonna cut the sheetrock at 10
inches and then you just can’t have to fix it they’re not gonna replace the
whole walls Wow so that’s a great point so as high as that water goes is as high
as they’re replacing and what about we know when you get water in a home the
electrical system is going to be affected if it went up to the outlets
yes possibility of mold and all that stuff is that mold wouldn’t be covered
the the remediation to dry everything out would be covered and if there was
like some mold there because it you know that the damage happened yesterday and
there’s mold today that would be covered but if you had a flood and now we’re you
know so many years after sandy if there’s mold now from Sandy that’s not
come if you can’t go back to the flood insurance company because that happens
over a long period of time so it’s it’s done in an accidental the other thing is
contents they don’t replace the contents they depreciate so if that washer and
dryer you had gets destroyed you paid five hundred dollars for them they might
only be worth two hundred dollars now you’re only getting the two dollars
okay this is I guess I’ll call a question for a because as you’re
speaking I another question came up how is there any overlap between your
homeowners insurance and your flood insurance and the point you just made a
lot of people purchase homeowners insurance where they have replacement
costs where it’s not depreciated so if my flood insurance is depreciating man
I’m only getting two hundred bucks for my thousands all the washing machine
will my homeowners insurance pick up the difference well okay but it
depends on this is this is where people just like they get a quote and they just
go with the lowest quote and the reason that it’s the lowest quote is because of
the exclusions and until you have a claim you don’t really know where your
exclusions are and one of the biggest ones is the water backup coverage that
you talked about right that could act as an overlap unless your company doesn’t
cover and if it’s due to flood waters so during sandy you know we deal with
several different carriers and during sandy most of the carriers would not
cover the water backup because it was caused by the tidal surge brain and we
had one carrier that covered it so that acted as your overlap so they had $5,000
worth of water backup coverage to cover whatever the flood insurance wouldn’t
cover in the basement okay if it sounds confusing ladies and gentlemen it is
that’s why you need people like Rob Zabbia to explain all the details for you
and the last question the one I said that people should wait for. Is
there any way that a homeowner can save money either
you know let’s say they have an active policy now and they’re in a flood zone
it’s a required insurance or they’re thinking about purchasing a house that
happens to be in a flood zone and by the way I’m going to put a link up on the
top to other videos that I’ve made one is should I buy a house in a flood zone
and the other one is have a check and see if your property is in fact in a
flood zone so I’m gonna put links to those in this video as well but back to
the question is there any way that anything a homeowner can do to save
money and reduce the cost of flood insurance moving forward yeah there’s a
couple different things there are some private companies that are coming into
the market they’re very very limited on their appetite though because obviously
they’re going to pick and choose because the National Flood Insurance Program
assets everybody as long as it meets you know
all the criteria whereas the private companies can pick and choose that they
want but again you need to look at who the private company is I only deal with
one company that’s a private carrier because they’re the only one that I’m
confident enough after sandy would would be able to withstand this for a lot of
these other companies I’m not sure about and they all have ratings so thank you
buy an A rated bond well listen you only want to buy an A rated insurance policy
and it’s a lot of BCD rated insurance companies out there so stay away from
those but so look you shop and see if there’s a private carrier that’s good
and reputable that will be able to do it for a better price and better coverage
the other thing is is an elevation certificate you can hire an engineer and
they can look because let’s say if you’re looking to buying a house and the
people is sweared in the fifty years they never had any water or sandy they
didn’t have any water but they’re in the high-risk column it could be because
that house is a little bit higher and it could qualify for a lower rate so for
you know a couple hundred dollars the engineer can come out and they can check
it to see if we would qualify for the lower and how do you find those
engineers that do this type of thing because that’s a great point you can go
yeah I’m sure you can search them on the web I work with a couple that I know
that are really really good at it and they’ll also do different things because
like crawlspaces could disqualify them because they look at the lowest ground
floor level so if you have a crawlspace that’s below ground that’s now the
lowest level so you can put flood vents in you can fill in part of the
crawlspace to bring it up high enough there’s a bunch of things that you can
do that could cut the premium from seven eight thousand dollars a year to two or
three thousand dollars a year which makes you a huge difference definitely
particularly you want to work with somebody who is really good at knowing
the ins and outs for the program the biggest problem that we have is you know
there there’s companies that do write your own so like all state travelers
they’ll write it but it’s all still a FEMA policy right the problem is is it
still goes through FEMA and the people at FEMA half the time don’t know
these rules you know they’re government employees are not necessarily trained
very well so you need to have a good engineer that knows the ins and outs and
then that way we can have the discussion with the underwriters and find the
underwriter that knows what they’re talking about so we can make sure that
we’re getting the right rate great Thank You Rob Zabbia from Zabbia Insurance I’m
going to be putting a link to the websites that he
mentioned where you can check on your own and also to Rob’s company website as
well thanks again Rob and we are good to go
great thank you hello yes I’m talking to you the person that watched my video to
the very end thanks a lot for watching if you enjoyed it please give me a big
thumbs up subscribe to my YouTube channel like me on Facebook I am a
Licensed Real Estate Agent in New York State but I also have a referral service
that deals nationwide so if you’re looking for to buy or sell a house
anywhere in the United States please send me a text contact me via phone and
I’ll set you up with a local professional in your area if you’re in
my vicinity I’d be more than happy to help you out in any of your real estate
transactions that you’d like this is Mark Schreier from Century 21 American
Homes and I’ll talk to you soon

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