Tackling the arduous process of cutting red tape at the federal level can be frustrating and time consuming, but one local business is well equipped to deal with the Federal Emergency Management Agency regarding required national flood insurance. Flood Premium Reduction Services, Inc., owned by Lexi O'Leary of Harrisville, can cut through red tape like an oar through the water.
According to O'Leary, her company's focus is to initiate and complete the process of reducing or eliminating the required federally mandated flood insurance for those homes with a mortgage who fall within the flood plain.
"Our service goes beyond reducing or eliminating in that we navigate the entire, involved governmental process culminating, if possible, to deed recordation preventing future flood insurance requirements," O'Leary said.
The Federal Emergency Management Agency (FEMA) enacted the National Flood Insurance Program in 1994 and anyone purchasing a home through a lending institution or refinancing their home can be required to purchase flood insurance depending on where that property falls on the Flood Insurance Rate Map.
The 30 step process O'Leary uses to reach this goal for her clients is patent pending. Her business became incorporated last May. Since then she has worked with many clients - several who are property owners on Cedar Lake - which have been removed from the flood plain.
There are three points that Flood Premium Reduction Services does in the initial stage of the process: Assists and/or requests an elevation survey and evaluates the findings; obtains a Flood Insurance Rate Map and evaluates the findings; and makes recommendations to the property owner as to the findings.
"If it can be determined, based on the findings, that the property owner or purchaser is eligible to have the flood insurance requirement reduced or waived by the federal government, my company will expedite our protected process to complete five points," O'Leary said.
Those five points are: Obtaining the required forms to work with the lending institution, land surveyor, insurance company, Federal Emergency Management Agency (FEMA) and National Flood Insurance Program (NFIP); execute and submit all completed documents to FEMA; complete and forward all required forms for all necessary agencies; track the forms to complete the process expeditiously; and secure, for the property owner, their current year's premium refund. "I have one hundred percent success rate," O'Leary said. "I work with FEMA on a daily basis. By now they know me by name. I follow up and make sure all of the documents are moving through the system. The process usually takes about 16 weeks.
"I get the refund for the insurance premium within one year. The sooner the property owner does it, the better chance for them to get their premium back," O'Leary said.
The end result is securing a Letter of Map Amendment (LOMA), which, O'Leary explained, amends that parcel of land from the Flood Insurance Rate Map.
The Flood Insurance Rate Map is the key to determining whether a parcel of property is in the flood plain. "The government sets three zones on the map," O'Leary said. "It's up to the property owner to prove if their property is in the right zone or not. Premiums are determined depending on what zone the property is in. It could mean the difference of $1,500 a year or $200 a year."
O'Leary explained that not all property in Alcona County or the region have the requirement of flood insurance if there is a mortgage. "The National Flood Insurance Program is mandated only if a community (its government) participates. If a community doesn't participate, it isn't mandatory," she said. "Some locations can't get flood insurance at all because some communities don't participate."
"However, what most people don't realize is that FEMA has to declare a national disaster in order from property owners to get relief if something happens."
"My services are similar to that of a tax preparer, "O'Leary said. "This is something you can do yourself -- if you have the time and are willing to go through the long, time-consuming process. Or, like the thousands of people who take their tax returns to a tax preparer, there are a lot of people who don't want to make a mistake and be penalized for it."
If, after the first three points of the process, O'Leary doesn't feel there is a way to make a change in the property owner's status, she doesn't go any farther. "If I don't feel they are able to be helped, I don't charge them to continue."
O'Leary and her husband, Scott, have lived in Harrisville since 1995. They have one daughter, Errin, 5. Scott owns O'Leary Construction. O'Leary works out of her home based office and has expanded her scope nationally to Minnesota and California. She has attended several conferences to gain exposure. by Cheryl Peterson -- Editor Reprinted from the Alcona County Review, April 24, 2002
Reducing Your Flood Insurance
Flood Relief Specialists works with borrowers and property owners nationwide to assist in reducing, eliminating and placing accuracy with regards to their flood insurance requirements.
If your situation causes you to wonder…WHY? · You were recently placed in the SFHA (Special Flood Hazard Area) and you were not in it previously. · Your property sits in the SFHA but your structure does not (you can only be required to insure your structure, not your land). · You received a notice, requiring you to increase your current coverage to meet your homeowners insurance replacement cost (up to $250,000.00). · You received a letter from your Mortgage Company that gives you 45 days to comply with the flood insurance requirements or it will be forced placed through your escrow account. · When there is flooding that affects the structures across town and does not affect your home, why do you have to pay flood insurance? · Your annual premium has consistently gone up even though there has been no flooding or claims on your structure. · Your neighbor pays a much lower premium or no premium at all. · Your property bumps up against a flood zone, unfortunately placing your structure inappropriately, in the higher risk zone.
Our energy is geared towards structure owners to place accuracy, which could result in a complete elimination via a LOMA and a refund of the entire years’ premium. This also removes the stigma of required flood insurance because of a LOMA being issued in the address of the structure, not in your name; thus making your structure far less stigmatized and much more sellable.
When you have a LOMA on your structure, even though you are not required to carry Mandatory Flood Insurance because you are not securing Federal Funds, the benefit goes beyond lifting the requirement to pay flood insurance, It would also eliminate any further issues for future potential buyers or yourself if you decide to re-finance. It is the focus of Flood Relief Specialists to provide the service that not only completes and tracks the forms and documents required by FEMA, we also navigates the entire process on your behalf.
We offer a variety of services including: Elevation Certificates Nationwide within 5-10 business days; FZD’s (Flood Zone Determinations); LOMA’s (Letter of Map Amendments) Aiding your clients through the process of FEMA. As members of the MMBA and NAMB, we stand ready and able to be your go-to professional for all of your flood issues of concern. We can handle any number of FZDS’ and check all flood positives with a preliminary evaluation including the preparation for all documents to be delivered to escrow for efficient closings.
Contact their Research Analysts at (989)724-6622, or visit their website at www.fprservices.com. COMMUNITY NEWSLETTER JANUARY 2009 PORT OF THE ISLANDS
Condominium association board members are burdened...
Condominium association board members are burdened with a number of issues regarding their condominium building or complex, although the issue of Flood Insurance provides each board member with a liability that could be a life altering experience in the event of a flood disaster.
According to Mandatory Flood Insurance Guidelines, Condominium Association Board Members are responsible to maintain the necessary flood insurance coverage, and members can be held personally liable if buildings are not adequately insured.
It is no wonder so many multi-family buildings are over insured, just to prevent that from happening, Insurance agents will prepare quotes based on the information provided by the board members or managers, but errors or mistakes embedded in the information can only produce inaccurate coverage. The "burden of proof" (information provided to NFIP, FEMA and FIMA to prove accuracy) lies in the lap of the managers and/or board members. Whether you retain the services of an attorney or a flood professional, such as Flood Premium Reduction Services, to gather the correct information, the final result is presented to the federal agencies for adequacy, to provide for your flood insurance responsibility. We can dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
NOTE: We encourage the purchase of flood insurance by all property owners. All areas are susceptible to flooding, although to varying degrees. In fact, decreasing the cost of your structure's insurance premiums due to a low-to-moderate degree of risk discovery, will not jeopardize your coverage in any way. Reprinted from The West Florida Wire, Winter 2003, Vol. 1, November 3, 2003
Article Contributed By: Don Stearns, Flood Premium Reduction Services
Tackling the arduous process of cutting red tape at the federal level can be frustrating and time consuming, but one local business is well equipped to deal with the Federal Emergency Management Agency regarding required national flood insurance.