The policy assumption process makes it easy for new homeowners to take on the seller’s flood insurance policy. Here, we’ll take a look at everything you need to know if you’re considering buying a home in a flood zone and want to assume the former owner’s flood insurance policy.
What Is Flood Insurance?
If your home is in a flood zone (as determined by FEMA), you’ll need to purchase flood insurance to protect your property. Thankfully, it’s likely that you’ll be able to take over the policy of the previous homeowner, saving you the hassle of needing to purchase a new policy.
Why Is Policy Assumption A Smart Move?
Assuming the former homeowner’s policy can lower costs for the buyer. Usually, an elevation certificate is required for a new flood insurance policy. Since the policy for the home already exists, the buyer does not need to go through the process of paying for an elevation certificate.
Policy assumptions also benefit sellers. It can be hard to sell a home in a flood zone, and passing on a policy to buyers can speed along the process of closing the sale. One thing to watch out for: typically, when a home in a flood zone is sold, the seller receives a refund, as insurance policies are usually paid a year in advance. When insurance policies are a part of the home sale, the seller does not receive a refund.
Need Flood Insurance? Birdsong Agency Inc. Can Help
Insurance agents at Birdsong Agency Inc., serving Snellville, GA, are here to help you through the process of purchasing flood insurance for your new home. Reach out or stop in today to learn more about flood insurance policies.