Was Your Home Hit By Sandy? Understand the Grandfather Rule & How it Can Save You Money

Has your home been affected by Sandy? Flood Insurance Rate Maps, or FIRMs, are going to change soon in the wake of the storm. That means your home might be moved from a low-risk property to high-risk. Understanding the NFIP Grandfather Rule will help you save money. Here is what you need to know:

Buy a policy before the new maps take effect in New Jersey. You’ll likely qualify for the NFIP Preferred Risk Policy (PRP), which covers buildings and their contents for as little as $129 for the first year. After the new maps become effective, you can now renew the PRP for two years. On the third renewal, you will qualify for the standard rates associated with moderate-to-low risk zones, rather than high-risk zones. (FloodSmart.gov)

This could add up to significant savings because otherwise, the property will be rated using the high-risk flood zone on the new map. Contact your local New Jersey Shore builder or architect for more information. Learn More