
Annually check whether your Flood insurance declaration page is set to "Primary Residence: N or Y" (see rating information section). For single family owner occupied homes only, Flood Insurance annually requires you provide proof of primary residency (ie. signed "Statement of Primary Residence Status" form, drivers license copy, etc.) in order to receive a premium subsidy. Failing to do so results in a premium increase at a rate of 25% a year (plus HFIAA $250 surcharge) until full non subsidized premium is reached. This can typically be a $500-600 premium increase! A primary resident, must live in the home 50% of the time to qualify for the subsidiary (single family homes only). A principal resident (effects amount able to collect for a claim) must live there 80% of the time.
Mortgage companies will NOT take care of this for you and will simply pay the higher premium from your escrow account. If you miss the proof of primary residency request prior to policy renewal, you can submit proof during the policy period and request a reimbursement of over paid premium.
Also, mortgagee amounts can drive required flood insurance limits higher then necessary. As you pay down your mortgage, have your agent help assess your flood insurance limits of coverage (building & contents).
Next we'll discuss Flood Elevations Certificates.
Mortgage companies will NOT take care of this for you and will simply pay the higher premium from your escrow account. If you miss the proof of primary residency request prior to policy renewal, you can submit proof during the policy period and request a reimbursement of over paid premium.
Also, mortgagee amounts can drive required flood insurance limits higher then necessary. As you pay down your mortgage, have your agent help assess your flood insurance limits of coverage (building & contents).
Next we'll discuss Flood Elevations Certificates.