As a result of the FEMA Map Revision which was done in September 2008; and the subsequent letter from Chase Home Finance requiring flood insurance; we ventured on a quest to obtain a flood insurance policy. We thought it would simply be a matter of locating the best available insurance premium rate; but we were very wrong!
We were determined to obtain a policy on our own, before Chase Home Finance had the opportunity to enforce one at some ridiculous rate. We had forty-five (45) days ticking away and when it became clear to us that we were not going to meet that deadline we went to Chase's legal department and explained our dilemma asking for an extension. Denied!
During our search for a policy we found out a few things about flood insurance.
- A flood insurance policy premium is an annual premium; payment due "upfront" and "in full". There is no allowance for monthly premium payments.
- Flood insurance premium rates are calculated based on the elevation variable between your finished floor elevation and the determined Base Flood Elevation (BFE). The BFE can only be obtained through an engineering study called a LOMR, which is estimated at costing between $50,000 to $75,000. This does not include any additional costs for engineering design work necessary to implement an elevation remedy to water flow problems.
- An Elevation Certificate is required during the flood insurance application process; and in order to obtain an Elevation Certificate you need the above referenced elevations; BFE and finished floor.
During communication with our insurance company we were told that the Elevation Certificate provided we had provided to them was no good; that it was not only incomplete but also missing the required engineering seal/stamp. So, I went back to the County Flood Plain Administrator who had provided us with the original Elevation Certificate.
Back in May 2008 after the first flash flooding event on our property (April 17, 2008); the Flood Plain Administrator told us he believed our home was in the flood plain and that he would go search for the file on our lot. He eventually faxed over some original documents to us, one of those being the Elevation Certificate.
After receiving the bad news from the insurance company, I contacted the Flood Plain Administrator again. He agreed to meet with us and came to our home on October 24, 2008. During our meeting he explained to us that the elevation certificate was incomplete and the elevations noted were clearly incorrect. We took a walk in the backyard during which time my husband asked him "How did a flood permit get issued on this house without the proper engineering study and elevations?" The response was a visual, rubbing forefinger and thumb together with a raised eyebrow. My husband then asked "What a bribe?" To which Mr. Flood Plain Administrator responded something to the effect; "Probably, stuff like that happens all the time."
A subsequent email from the Flood Plain Administrator stated, in part:
"The numbers he (engineer) came up with would qualify for a LOMR, which is a “Letter of Map Revision”. LOMR’s are used to eliminate an individual residence from the floodplain, thereby qualifying for the cheapest flood insurance rates allowable, or in some cases eliminating the need for flood insurance. His numbers indicate that your lowest floor is 5 feet higher than the BFE. I just can’t see that. It doesn’t appear that the residence is 5 feet higher than any adjacent grade."
No LOMR study was ever done; thus the BFE number that the engineer erroneously plugged into the incomplete Elevation Certificate apparently came from thin air. More on that in the next blog. It just gets more and more sinister.
In short, the house was illegally built in a flood plain without the engineering study required by FEMA back in August 1998. Somehow the county caught on and the homeowners eventually were asked to come into the county office; and on March 17,1999, the wife went and was issued a flood permit for $50.00 without providing the federally mandated engineering study as required by both the county and FEMA.
Not only is our finished floor NOT 5 feet above any adjacent grade; the finished floor elevation is estimated by the County Flood Plain Administrator, an engineer and is affirmed in topo maps as being approximately 3 to 5 feet below the perceived BFE.
The end result being that the insurance company could do no better on a premium quote than an annual cost of $6,127.00, due upfront. As a result, Chase ended up enforcing a flood insurance policy on us; attaching an additional $500 per month to our mortgage payment. Now it was certainly time to find an attorney and file a civil suit, and fast!
I apologize for typos or any confusion in these blogs. This has been so exhausting; and the blogging has begun so that we have our story laid out in an emergency should we find ourselves without Internet, phone and a roof over our head.
Last night we were up until 4:30am working on Part 8 of the blog. The days just meld together now; there is no real distinction between daytime or nighttime. I find myself rationing the use of shampoo, deodorant and lotion, but don't let my husband know. Each day I find that I am losing more and more hair with the stresses. Mike spends about 5 minutes removing hairs from my clothing before we run an errand. I cried last time, and he told me I am beautiful and not to worry.
Neither one of us have been to a doctor in four (4) years. The money we were going to allocate for health insurance was robbed with a tractor payment; so we have mended broken bones and cuts the old fashion way.
Do you know what this flood insurance adds to the life of the loan, not considering increase in insurance premiums over the years? It adds approximately $180,000 to the loan. We would not have qualified for that during the escrow process!
We do love each other very much, at least no one can steal that from us!
