Do you really have to get flood insurance on Jackson Lake?
For the past several years the discussion has heated up regarding flood insurance on Jackson Lake. Many homeowners have been told by their mortgage company that they must purchase this coverage immediately, BUT are NOT told that there is a relatively inexpensive way to get a full exclusion from this requirement.
The flood zone is a wide swath around the lake that covers vast amounts of property that is actually not in the 100 year flood zone. The flood zone area map was made for the entire lake using a 20 ft. contour map and the flood area is generally six to seven feet above full pool (528.5 ASL). Therefore, 90% of lake homes are not actually in the ZONE but it is up to the homeowner to pay to get the exclusion. This usually is a onetime expense of $400.
If you have a mortgage on your property OR if you plan on selling your property now or in the near future…get the process started. If you do not have the exclusion on hand when you get an offer on your house it could cause the closing date to be extended out as much as 2 to 3 months. Not a good sales strategy.
You may not need the exclusion or coverage now if you have no mortgage or if you loan is a HELOC or through a Private Bank or Credit Union that does not sell their loans.
Call me to get more information on how you can best manage this costly government mandate.
Flood Insurance Exclusion Process:
Due to the government including a wide swath on Jackson Lake for flood insurance requirements for all loans backed by any federal loan program, it is necessary to obtain a LOMA (Letter of Map Amendment) to get a waiver from this requirement.
- Contact a surveying company with LOMA experience. Jordan Engineering in Monticello.
- A LOMA specific topographical survey will be completed
- If your property is clearly IN the flood zone the process ends at a cost of approx. $300
- If your property is NOT in the flood zone, or is in question, the surveyor will send you copies of the signed LOMA and one copy of the Elevation Certificate in the pre-addressed envelope to FEMA
- FEMA has up to 60 DAYS TO RESPOND. Cost $100
- WARNING. Currently, all new flood insurance policies must be paid for a YEAR in FULL. No refunds after you get your waiver.
Recommendation: If you have a mortgage on your property OR if you plan on selling your property now or in the near future…get the process started.
Other possible exclusions: HELOC, Private Banks & Credit Unions that do not sell their loans
Call Wally Cawthon @ 770-313-0574 if you have questions.