Some good ways to lower your flood insurance costs

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With people throughout the Lowcountry becoming more alarmed by increased flooding and climate change, it might be a good idea to take a look at some ways to lower flood insurance costs.

Elevation Certificate

A Flood Elevation Certificate plays a crucial role in determining the amount of your Flood Insurance quote. The primary function of the FEMA elevation certificate is to determine and certify a structure’s elevation to the base floodplain level. The higher the floor level and other structures are above the flood plain level, then the lower the flood insurance premium. The lower the floor level, the higher the premium.

The certificate comes in handy for determining if the structure is actually in a flood hazard area. For instance, the land may be in a flood hazard area but the structure itself may be in Zone X. Zone X does not require flood insurance, although it is still available. A buyer or buyer’s agent should always ask the seller for an existing and current flood elevation certificate up-front. It will save time and expense for the buyer.

Homeowners can also save with an elevation certificate

An elevation certificate is not just for buyers. Current homeowners could potentially save money in flood insurance premiums. A seller with a current elevation certificate could provide a copy to buyers. Buyers are then able to obtain solid insurance quotes up-front which give buyers confidence. Too many buyers are scared off by the unknown of flood insurance costs. The time it takes to get a Flood Insurance quote could cost you a buyer. A seller with an elevation certification may have an advantage in attracting and keeping buyers even if the home is in a flood zone. A typical elevation certificate might cost between $400 and $800 depending on the home and property

Elevating your home

A huge determining factor of flood premium is the floor level, and other structures of the home compared to the base floodplain level. The higher the structure is above the floodplain, the lower the risk. Again, lower risk equals lower premium. Conversely, a home below the floodplain will make the premium much higher. Many people who live in the Charleston area have determined that it is often cost effective in the long run to actually elevate their homes or remove enclosures and equipment that are in the floodplain.

FEMA states, “A first floor elevated three feet above the base flood elevation, can expect to save 60% or more on annual flood insurance premiums.” In the case of living on the oceanfront, a 60% premium savings is significant.  

Install Certified Engineered Flood Vents

FEMA states that homes which have enclosure walls beneath the base flood elevation must have flood openings. If there are no flood openings on a home, this will increase flood insurance costs dramatically. These openings are called certified engineered flood vents. When considering flood vents, it is key to consult a flood mitigation expert. Speak with your Insurance agent, surveyor and/or professional consultant to determine exactly how, where and how many of the vents must be installed for you to receive credit for them in mitigating the cost of flood insurance. Typically you need 1 square inch of ventilation for each square foot of enclosed area with A minimum of two vents per enclosed area. The two vents must be on at least two different sides of the exterior walls. The bottom of the flood vent opening must not be higher than 12 inches above the adjacent grade. The top of the opening must be below the Base Flood Elevation (BFE). Some types of Engineered vents wiil allow you to have fewer vents

Community Rating System

If considering the purchase of a home in a flood hazard area, make sure to find out if the community is enrolled in the Community Rating System (CRS). If the community is enrolled, a flood insurance discount is possible. FEMA states “the discount is calculated based on the community’s efforts to reduce the risk of flooding.”

Converting Ground Floor Living Space

Sometimes a multi-level home may have a first floor beneath the base flood elevation. As mentioned, living space below the flood plain level increases an insurance quote significantly. Another consideration is to convert first floor living space into an open foundation. This would reduce heated square footage which does affect the living space and possibly value negatively. However, this conversion could make a huge difference in flood insurance premiums, potential future damage, and even help attract buyers. For further details on ground floor conversions see FEMA.

Assume Grandfathered Policy

If buying a house in a flood hazard area, always ask if there is an existing flood policy. The policy may be assumable and there could be advantages, especially if the property and insurance are grandfathered in. Under the National Flood Insurance Program, grandfathering was created for owners that had flood insurance in place prior to the maps. Additionally, homes built to the standards relative to the map in effect at the time of construction may be grandfathered.

When assuming an existing policy, the prior rating will remain in effect even if the flood zone has changed. Although, this is only the case if there has been continuous flood insurance in place on the property. Each lender may be different in regards to allowing a buyer to assume an existing flood policy. Therefore, determine how much time is left prior to the policy renewal date and relay that to your loan officer.

  • For more information on Flood Insurance, contact your current or prospective Homeowners Insurance provider. 

Charleston is Changing…and That’s a Good Thing if the Planning is Done Right!

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City planning is vital for a growing area like Charleston. 

Quite often these days we hear long-time residents of Charleston saying that “Charleston is just not the same place that it used to be anymore.” “There are too many people.” “Density is killing the goose that laid the golden egg.” “Traffic is impossible.” 

As the old saying goes…nothing is more constant than change! What is happening in Charleston is growth, physical and economic growth, and as healthy as that is, it’s unsettling to many people.

What we have to understand is that Charleston is a basically healthy city, and healthy cities by definition will likely grow. What most people do not grasp is that there are only two ways for a city to grow—up or out. 

Charleston’s Residential Growth 

Since World War II Charleston has continued to grow out from its historic core on the peninsula and in the direction of cheaper land and more privacy. 

West of the Ashley, East of the Cooper, up the neck to North Charleston and Goose Creek, all of these areas have boomed in the post-war suburbanization of the Charleston metro area and all of them are now wondering what the next phase of life for these suburbs will be and how they can continue to be relevant in the context of a city that is growing at a rate faster than even our country as a whole.

How City Planning Is Important

But “Growing Out” has stretched our public funds and infrastructure to the breaking point. Having to build new roads, bridges and schools with each additional new suburb literally taxes our citizens beyond the capacity of our tax base to deliver. 

When it comes to the infrastructure necessary to support our insatiable appetite for outward growth, we Charlestonians are now having to admit that we have champagne taste, and a beer budget! 

Our growth problems have outgrown our financial ability to reasonably solve them. As a result, Charleston is now left with a community of unaffordable housing, forced automobile ownership with no alternatives for those who cannot or do not care to drive, under-funded schools, and the list goes on.

So what is the solution for balancing growth and building healthy communities? 

The first thing to do is to determine what the basic needs of the community are and to be sure that those needs are met first. Food, clothing, and shelter rank high on the list of basic needs. 

Having those things close at hand is essential to a healthy community. Having accessible employment that pays a livable wage is how we achieve those first three basic needs. 

Low unemployment and a living wage for workers is foundational. Investing in accessible, viable, public transit ensures that those who cannot live close to work will have the ability to get there at a reasonable cost and in a reasonable time-frame. When employees can’t get to work, we ALL suffer.

What’s the Best Way To Use Charleston’s Space?

So what’s a growing city to do? Outward growth no longer being viable, upward growth becomes the only alternative for a growing healthy city. Many folks may wonder exactly what that upward growth might look like in Charleston. The answer to that question is simple: taller buildings and denser housing in the right places—exactly the scenario that is happening in our city today. 

The proverbial single-family home on the quarter-acre lot has NEVER paid its way in terms of taxes. The same infrastructure that serves one home on one lot could easily serve many homes on that same lot with a denser design without much additional cost to the taxpayer. 

Residential Density

The problem is that people feel threatened by density and they have sometimes even been led to believe that something might be “taken away” from their single-family neighborhoods if we decide to build more densely. This is simply not the case.

Charleston’s West Ashley and James Island suburbs were built out in the single-family plan. Those neighborhoods are now more than 50 years old and will almost certainly remain single-family. 

No one is going to build high-rises in neighborhoods like Avondale or Byrnes Downs…but there are hundreds of acres of undeveloped land in the Sam Rittenberg corridor that could easily support higher-rise buildings. The commercial character of Sam Rittenberg is also a good fit for locating housing nearby. 

The Sam Rittenberg right of way is excessively wide and could easily support bike/pedestrian lanes and public transit between Citadel Mall and the Navy Yard area on the other side of the North Bridge. 

This denser housing is no threat to the existing neighborhoods and will link transit and walkable housing to infrastructure that is already publicly owned in the area…saving millions in tax dollars for other projects like flooding. Sam Rittenberg is generally also a higher elevation than most of the rest of West Ashley.

Charleston Is Growing, Whether You Like It Or Not

As Charleston grows, our goal should be to pull growth in and to force it up so that we optimize the infrastructure dollars we spend. The first-tier suburbs of West Ashley and James Island will by necessity become more urbanized and denser in the next few years simply because these suburbs are immediately adjacent to the historic core of the city and are generally more affordable than downtown. 

The thing we need to remember is that what is happening to Charleston is generally healthy growth. We should all strive to be part of the planning for that growth so that when it comes, we will know that there is nothing to be afraid of. We cannot stop growth, but we can certainly plan it and direct it in a citizen-driven way.

LGBTQ Couple’s Guide to Home Buying

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For most gay and lesbian couples, buying a house together is not only an indication of a major commitment to each other, it is more often than not the most expensive single purchase you will ever make as an individual or as a couple. Because most property laws were written to protect individuals and married couples (who are viewed under the laws of many states as one entity) it is crucial that as LGBTQ couples we understand that we must create the contractual and legal documentation which will provide us with the protections granted automatically to married couples. If these simple protections are not created, the death of yourself or your partner may result in a new partnership with family members of the deceased. Sometimes that’s not a bad thing…sometimes it’s a disastrous burden for a grief-stricken survivor!

In 2015 marriage was legalized in the US for same gender couples. In terms of legal protections, marriage is the “Gold Standard”. Civil Unions that preceded legal marriage were “something less than marriage” depending on where you lived. Many couples that now have the legal right to marry have made the decision not to. For these folks it is important to be aware that you have to go the extra mile if you want to protect yourself in legal, property and healthcare decisions. Consulting an attorney sooner rather than later is your best protection as a couple if marriage is not in the cards.

If the general rule of purchasing real estate is “Location, location, location” then the LGBTQ rule of real estate should be “Get a lawyer, get a lawyer, get a lawyer! And only a real estate lawyer…preferably one who already understands the critical issues of gay and lesbian property ownership.

Here are a couple of major pitfalls to be aware of when purchasing property as a LGBTQ couple:

If you want your rights to your property to go only to your partner immediately upon your death and outside of probate, you must take title to your property by JOINT TENANCY WITH RIGHT OF SURVIVORSHIP…not individually and not just by joint tenancy. Taking title any other way will require probate upon your death and may result in the deceased partner’s “heirs at law” becoming owners of the property along with the surviving partner. The heirs may then sue for partition and force the surviving partner to sell or move out of the property.

In some states special laws called “Homestead laws” protect the rights of a spouse and/or minor children of a married person or a parent. These are not to be confuse with “Homestead exemptions”, which refer to taxation. If you were previously married, then you later purchase property with your partner, but your divorce was not finalized or was flawed, your former spouse may have rights to your property…your minor child may also have rights to your property even if the divorce was finalized. If your former spouse has custody of your child, you may be dealing with your former spouse as a partner in real estate ownership again because of his or her status as guardian for your child if you are not careful with how you take title to your property. Always speak to your attorney about these things before buying or selling a property.

Sometimes one partner may have significantly more money to invest in a property than the other partner. Unless the partner with more money invested in the property is willing to share 50/50 with the other partner, consideration should be given to other forms of protecting each persons interests. 50/50 partnership may not be possible or desirable under certain circumstances. Sharing a home together is often more important than the percentage of ownership each partner has in their home. Perhaps one partner already owned the home in which a new couple is living. If the real concern is more about the security of the partner who has no ownership interest in the home, then provisions to protect the security of the non-owning partner might be more easily made by one’s will rather than by changing the title. Get good gay-friendly and gay-knowledgeable legal advise before you purchase property with your partner.

Equally important as deciding how to take title to a property is deciding the smaller issues such as:

  • How do we pick a competent real estate agent?
  • How do we know which neighborhood is gay-friendly?
  • How do we know that the banks and insurance companies won’t deny our applications because we’re both of the same gender?

The first step in answering all three of these questions is to familiarize yourself with the gay community in the area where you plan to move if these things are important to you. Don’t be afraid to ask questions of anybody. Negative responses to your questions (or your sexuality) can be just as informative as positive ones when you are trying to get the scoop on local attitudes. In the days prior to the general availability of the internet, this was much more difficult. Sometimes a friend in the area can give you all the local information you need. Sometimes the internet and internet chat rooms can be helpful. Bars and book stores (all kinds) generally carry local gay papers which will fill you in on what’s happening in the community and may even have ads for local real estate agents. In Charleston, SC the best source of information on the LGBTQ community is The Alliance for Full Acceptance at www.affa-sc.org. AFFA has full -time staff ready to assist the LGBT community at any time.

Be aware that just because a real estate agent advertises in a gay paper or has gay-friendly website doesn’t mean he or she is a competent real estate professional. By the same token, just because a real estate agent is gay does not necessarily mean that he or she is familiar with gay and lesbian legal issues affecting real estate. They don’t teach that stuff in Real Estate School. Websites can be helpful, but unfortunately there is absolutely no verification of the statements made about agents/vendors on sites like Angie’s List or anywhere else. If you find conflicting recommendations, consider the source and weigh all reviews together rather than being concerned about one particularly negative review. Disgruntled employees and ex-spouses can submit reviews to these sites and you’ll never know if they are true or not…and agents cannot have the bad reviews removed without the permission of the reviewer. It’s better to look at ALL the reviews and do your own research to get a general idea of the level of an agent’s integrity and competency.

It is important to understand that most states require real estate agents to educate clients and customers as to the agency relationships allowed in that particular state upon their initial contact. It is a “Best Practice” to have a written contract between yourself and your real estate professional. Make sure you understand whether you are considered by the agent to be a client or a customer. An agent has obligations to a client under the law that he doesn’t have to a customer. It is critical that you understand those relationships and obligations before you discuss confidential information with a real estate agent. He or she may not be representing you at all and may be required under the law to disclose anything you say to the party that he or she does represent. Housing and employment non-discrimination against LGBTQ people are still legal under federal law.

Finding a gay-friendly neighborhood is often the easiest task in moving. If you can’t find a gay-friendly neighborhood, get directions to the nearest historic district. It’s a safe bet you’ll be as close as you’re going to get on the first try! Take note of whose real estate signs are in the neighborhood and ask around about the reputation and integrity of these people before you consider calling them. The company with the most signs may not be the company that is going to give you the best representation. Sometimes the smaller firms are the best choice to represent you because they perhaps don’t subscribe to the large corporate mentality of emphasizing volume sales over client representation. If you have an agent in mind that you’d like to know more about, do some background work and see what’s important to that agent. If community service is a big part of the mix, that’s a good sign. If it’s all business, profit and sales production, you might want to keep looking.

Competent real estate agents will have good banking, legal, home inspection and insurance contacts. Ask the bankers how they view applications from same gender couples and if they will allow your partner to insure his or her belongings (contents) under your homeowner’s policy if his or her name is not on the deed and the mortgage. Ask the lawyer what he knows about protecting gay couples. If they don’t mention the Joint Tenancy with right of survivorship issue, get another attorney. Also know that while LGBT couples can make legal agreements between themselves, there is absolutely no law in many states that requires ANY third party to be bound by those agreements. Remember this when you are drafting healthcare powers of attorney and similar documents. Contrary to what many uninformed attorneys will tell you, just because you and your partner make an agreement does not make it law if you are not married.

Ask the insurance people if the companies they represent will insure your partner’s contents if you do not plan to list your partner on the deed or the mortgage if you are not married as well. If the answer is no, then your partner will be required to purchase a renter’s policy to cover his or her contents. This means two deductibles in the event of a loss that affects both of you…one for you and one for your partner. This can be substantial in the event of a hurricane where some insurers now have the right to increase their deductibles to as much as 4% of the policy limit for coastal communities in the event of a declared hurricane ($4,000 on a $100,000 policy, plus 4% of your partner’s policy limit). If you are planning to insure your cars with the same company that has your homeowner’s insurance, ask if the companies they represent give a multiple-car ownership discount to unmarried same-gender couples. Some do not.

Congress has never seen fit to protect LGBTQ citizens from housing discrimination or employment discrimination, so do not assume that you are safe from either. If you don’t want to be discriminated against, don’t do it to others. If you see it or experience it, call it out and report it.

Don’t be afraid to demand what you need in making the biggest investment of your life and don’t be afraid to demand what you need to protect it. There are important differences for gay and lesbian couples when it comes to buying and protecting our property because of the way the law has always treated us prior to marriage being legalized. The laws were written to protect individuals and married couples. The unmarried LGBTQ home buying couple must go the extra step to protect themselves, both under the law and from the law.