Our client, a large commercial real estate company, owned a single structure multi-tenant industrial building. The insured was maintaining one NFIP policy that was coming up for renewal. The lender’s flood zone determinations showed that the building was in a Special Flood Hazard Area (SFHA: zones beginning with the letter A or V). The client was concerned over the rapidly increasing flood insurance premium and was looking for ways to reduce it.
Our industry-leading flood team quickly determined that there were more favorable rates available for this building. We obtained elevation certificate for this building that enabled us to re-rate the flood policy using the lower cost rate structure available through the NFIP. By leveraging our flood expertise, we delivered substantial future savings and increased property values.
- Reduced total annual NFIP costs by $5,000 (86%);
- Increased property value by $71,300, based on the application of a 7% capitalization rate;