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Flood Zone Correction Reduces Multifamily Property Annual NFIP Costs by $16,750

by Susieon April 24, 2017 in Case Studies tagged Flood Insurance, Flood Zone Correction, NFIP with no comments

Our client, a retail insurance agency, had an insured with a portfolio of multifamily properties in Florida. The insured was maintaining NFIP flood insurance policies on 21 buildings. 20 of the buildings were located in Special Flood Hazard Areas (SFHA: flood zones beginning with letter A or V). The client was concerned over the rapidly increasing flood insurance premiums and was looking for ways to reduce them.

The Solution

We performed a thorough flood risk analysis and found that 18 buildings were not at high risk of flooding during 100-year flood events. Therefore, they had been wrongly included in the SFHA. We worked with FEMA to successfully remove these properties from the high-risk flood zones and to reclassify them into the correct low-risk flood zones, where they should have been in the first place.

The Results

85% of the buildings were removed from the SFHA (18 out of 21);
$16,750 reduction in annual NFIP costs;
$240,000 increase in property values, based on the application of a 7% capitalization rate.

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A Multifamily Company Saves $135,000 on Annual NFIP Costs

by Susieon January 30, 2017 in Case Studies tagged Flood Insurance, Flood Zone Correction, Multifamily, NFIP, Premium Reduction with no comments

A retail agent had an insured with a portfolio of multifamily properties. The insured was maintaining NFIP flood insurance policies on 42 buildings at 4 locations. The lender’s flood zone determinations showed that the buildings were in Special Flood Hazard Areas (SFHA: zones beginning with the letter A). The client was concerned over the high flood insurance premiums and was looking for ways to reduce them. The retail agent was looking for savings opportunities and asked us for help.

THE SOLUTION
We completed a comprehensive flood risk analysis and determined that 7 buildings on two properties were not at high risk of flooding during 100-year storms. These 7 buildings had been incorrectly classified in the SFHA. We worked with FEMA to successfully remove all 7 buildings from the high-risk flood zone and to reclassify them into a low-risk flood zone, where they should have been in the first place. By leveraging our flood zone correction expertise and capabilities, we delivered five valuable benefits to the insured: (1) eliminated lender’s flood insurance requirement, (2) maximized the flood coverage afforded under the insured’s master property insurance policy, (3) delivered substantial future savings, (4) captured a large insurance refund, and (5) increased the value of the property.

In addition, through the flood risk analysis process we were able to identify more favorable rating options for buildings on two other properties. This allowed us to deliver three valuable benefits: (1) future savings by greatly reducing the annual NFIP premiums, (2) a large insurance refund, and (3) an increase to property values.

THE RESULTS
• Successfully removed 7 buildings from the SFHA;
• Reduced total annual NFIP costs by $135,191 (71%);
• Procured a $94,674 flood insurance refund;
• Increased property values by $1.9 million, based on the application of a 7% capitalization rate.

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Flood Zone Correction Saves Outlet Mall $50,158 on Annual NFIP Premiums

by Susieon January 19, 2016 in Case Studies tagged Flood Zone Correction, Lender Requirements, NFIP with no comments

The client is a real estate development company that holds a portfolio of internationally-recognized residential and commercial properties in the United States and Canada. Last year, the client built an outlet mall with 23 buildings. Prior to beginning construction, the construction lender pulled a flood zone determination on the main address of the property, which showed a low risk flood zone. Therefore, the construction lender did not require NFIP flood insurance. As they finished construction and went to secure permanent financing, the lender pulled a flood zone determination showing that 18 of the buildings were located within a FEMA-designated Special Flood Hazard Area (SFHA: AE Zone). In accordance with Federal Law, the lender required them to buy NFIP flood insurance on the 18 buildings, which cost approximately $50,000. The client did not factor into their projections the cost of NFIP flood insurance and were concerned they would have increase the CAM charges paid by all of their tenants.

The Solution

We did a thorough flood risk analysis and found that all 18 buildings were constructed in a flood safe manner according to FEMA’s rules and regulations, which means the buildings should not suffer damage during a 100-year flood event. We worked with FEMA to successfully remove all 18 buildings from the high-risk flood zone and to reclassify them into the appropriate low-risk flood zone.

The Results

Our Flood Zone Correction service delivered following valuable benefits:

Successfully removed all 18 buildings from the SFHA;
Eliminated the lender’s flood insurance requirement;
Delivered $50,158 of annual savings;
Prevented an increase to CAM charges passed through to tenants.

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Do your clients have properties in SFHA (flood zones beginning with the letters A and V)? If so, contact us today to learn how our Flood Zone Correction service can deliver valuable benefits to your clients.

Flood Zone Correction Reduces a REIT’s Annual Flood Insurance Costs by $103k

by Susieon August 10, 2015 in Case Studies tagged Flood Zone Correction with no comments

Our client, a national broker, asked us to help them reduce flood insurance costs for one of their clients – a large REIT with 16 properties in its portfolio that standard flood zone determinations indicated to be within FEMA-designated Special Flood Hazard Areas (SFHA), which include flood zones beginning with letters A or V.

THE SOLUTION

We performed a thorough flood risk analysis and found that 11 properties were not at high risk of flooding during 100-year flood events. Therefore, they had been wrongly included in the SFHA. We worked with FEMA to successfully remove these properties from the high-risk flood zones and to reclassify them into the correct low-risk flood zones, where they should have been in the first place.

THE RESULTS

70% of the properties were removed from the SFHA (11 out of 16)
$103,000 reduction in annual flood insurance costs
$1.47 million increase in property values, based on the application of a 7% capitalization rate

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Flood Zone Correction