Latest news with #FEMA-designated
Yahoo
20-05-2025
- Business
- Yahoo
How much flood insurance do mortgage lenders require?
Mortgage lenders require flood insurance on homes in certain FEMA-designated flood zones. Typically, the coverage requirement is either the full replacement cost of the home, the maximum amount allowed by the National Flood Insurance Program or the unpaid balance of the mortgage, whichever is less. You don't need to buy flood insurance if your lender doesn't require it, but since standard homeowners insurance doesn't cover flood damage, it might still be worth getting a separate policy. If you need a mortgage for a home in a flood zone, your lender will likely require you to purchase flood insurance. Here's why, how much coverage you'll need, what it'll cost and more. If you're buying a home in a Special Flood Hazard Area (SFHA), most types of home loans — including a conventional mortgage backed by Fannie Mae or Freddie Mac or an FHA, VA or USDA loan — require flood insurance coverage. Typically, you must have a policy that covers the full replacement cost of your home, the unpaid balance of your mortgage or the maximum coverage allowed by the National Flood Insurance Program (NFIP), whichever is less. Most flood insurance coverage is provided via the NFIP. The NFIP offers coverage for the property itself up to $250,000, as well as up to $100,000 for personal property. If your home is higher in value, the $250,000 NFIP ceiling might not be enough. To cover that gap, you can get a supplemental flood insurance policy from a private company. These policies aren't as readily available as NFIP coverage, however, and they will likely cost more and have higher deductibles. Learn more: Investment property mortgage rates If your home is in an area with a moderate to high risk of flooding — or an SFHA — your lender will almost certainly require flood insurance. In fact, if you're getting a government-backed loan, the lender is required by law to mandate it. The Federal Emergency Management Agency (FEMA) maps flood hazard areas, and you can find out whether a property is in one by plugging the address into FEMA's Flood Map Service Center. Keep in mind that your lender may require flood insurance even if you don't live in a SFHA — but if you do, you're very likely to need the coverage. Mortgage lenders require flood insurance for the same reason they require homeowners insurance: to protect their interest in the property. 'If flood damage is suffered and funding is not available to repair, the home's value diminishes significantly, which negatively impacts the lender and the homeowner,' says Kyle Herring, partner at Strategic Claim Consultants in San Antonio, Texas. This is why you might need to buy flood insurance even if you're not buying in a high-risk area or getting a government-backed loan. According to 2023 data from FEMA, about a third of flood insurance policies in force for single-family homes cost less than $1,000 per year, while another third cost between $1,000 and $2,000 annually. If NFIP coverage is available in your area, it'll likely be the most affordable option. The average cost of NFIP insurance is approximately $800 yearly, says Madelyn Rodriguez, a partner at Clausen Choquette, PLLC, a legal firm in Boca Raton, Florida which specializes in insurance disputes. She adds that 'this amount varies greatly by the location of the property, amount of coverage needed and proximity to bodies of water.' Flood insurance premiums can also increase from year to year, both for policies through the NFIP and private insurers. But the law limits increases to no more than 18 percent per year for most policyholders. Additionally, flood zones and classifications can change. You may buy a home that's not in a flood zone, but it is designated as a flood zone later on. This means you might be required to get flood insurance or pay more for it. 'If you have lower policy limits, you may also want to increase your flood policy coverage limits in the future as the cost of construction increases,' says Rodriguez. Note: In 2021, FEMA adopted a new rating system for NFIP policies. Here's more on those flood insurance rate changes. Learn more: Second home mortgage rates How to lower your flood insurance premium If you live in a high-risk flood zone, taking steps to mitigate flood damage can help lower your premium. These might include: Elevating the lowest floor of your home Elevating your HVAC and other essential systems Installing a sump pump or backflow check valve Getting an exterior floodwall The simplest way to avoid your mortgage lender's flood insurance requirement is to buy a home outside of a flood zone. Of course, that might not be an option for some. If possible, you could pay for the home in cash, but even then, you might still want to purchase flood insurance. Flooding happens on a near-daily basis throughout the U.S., and standard homeowners insurance doesn't cover flood damage. Is flood insurance required on a lot loan? If you're purchasing land with a structure of any kind on it, even if it's a barn or another building you wouldn't live in, flood insurance may be required. The lender will perform a flood determination, and depending on the findings of that assessment, a policy may be required. Is flood insurance required for a home equity loan? If your home equity loan is secured by a home located in a SFHA, then you'll need to have flood insurance on that home. Can a lender waive the flood insurance requirement? It may be possible to avoid paying flood insurance if you can prove that your home is located higher than the highest area flood waters are likely to reach. In this case, you may apply for a Letter of Map Amendment, known as a LOMA, from FEMA. Obtaining a LOMA allows lenders to waive flood insurance requirements. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Neptune Flood Research Group Releases Analysis Confronting the Growing Flood Risk in Texas
Largest private flood insurance provider highlights increasing flood risk as coverage declines ST. PETERSBURG, Fla., May 20, 2025 /PRNewswire/ -- Neptune Flood has released its latest research issue exploring the accelerating flood risk across Texas and the widespread underinsurance that threatens to magnify its impact. With more than 2.1 million properties projected to face flood exposure over the next 30 years, and over 200,000 expected to flood with near certainty, Texas is facing a critical insurance shortfall. Urgent action is needed to close this gap and strengthen the state's resilience. Key Findings in Texas According to the First Street Foundation, of the 2.1 million properties at risk, 1.15 million face at least a 1% annual chance of flooding. By 2050, the Texas Water Development Board (TWDB) expects mass migration, development trends, and climate intensification to add 2.6 million more people and 740,000 new buildings into high flood risk areas. FEMA maps identify only 860,000 total at-risk properties, highlighting the mapping inadequacy. Nearly 50% of all active National Flood Insurance Program (NFIP) policies in Texas are Pre-FIRM homes (older structures more vulnerable to loss). Since 2005, over 52% of NFIP claims in Texas have occurred outside FEMA-designated high-risk flood zones. The Cost of Inaction Texas ranks second nationally in NFIP claims, with over 150,000 claims and $11.6 billion paid over the past decade. Harris County accounts for nearly 50% of all NFIP payouts statewide, yet over 78% of homes remain uninsured. According to TWDB, the state has identified over $54.5 billion in needed flood risk reduction solutions, yet only $10.6 billion in available funding has been identified. Texas's Widening Coverage Gap Only 7% of residential properties statewide have flood insurance. In major inland metros like Dallas, Denton, and Bexar, coverage rates remain below 1% despite repeated flood events. Even in FEMA-designated high-risk zones, only 28% of residential buildings have flood insurance coverage. Since the launch of Risk Rating 2.0 (FEMA's new property-level pricing model) in 2021, average flood insurance premiums in Texas have risen 35%, while the number of buildings covered has dropped 30%. As rates transition to full-risk pricing over the coming decades, affordability concerns grow, with premiums consuming an average of 4-5% of household income in some counties. "Texas faces a clear and growing flood risk, yet millions of properties remain without adequate insurance coverage," said Matt Duffy, President of Neptune. "This report underscores the scale of the challenge and the need to improve both awareness and access to flood protection. As flood risk continues to rise due to climate change and development patterns, and with an active 2025 hurricane season on the horizon, addressing these gaps remains a critical priority for homeowners, insurers, and policymakers alike." Texas stands at a critical juncture. The convergence of outdated flood maps, rapid development, climate change, and declining insurance coverage has created a perfect storm of risk and vulnerability. Addressing this crisis will require a coordinated effort - leveraging better data, smarter policy, public-private collaboration, and expanded private flood insurance coverage. This report aims to inform that effort and provide a roadmap for strengthening resilience in the face of growing flood threats. Click here to view the complete analysis. About Neptune Flood Neptune Flood is the largest private flood insurance provider in the United States, revolutionizing the industry with AI-driven underwriting and machine learning technology. Neptune simplifies the flood insurance process, offering instant, affordable, and comprehensive coverage in minutes—without the delays and complexities of traditional insurance. Operating in 49 states and Washington, D.C., with Alaska launching soon, Neptune is committed to closing the flood insurance gap and making coverage accessible nationwide. View original content to download multimedia: SOURCE Neptune Flood
New York Times
22-04-2025
- Climate
- New York Times
A Seaport Museum Faces an Unlikely Threat: The Sea Itself
As an institution devoted to telling the story of the sea, the Mystic Seaport Museum has an inherently close relationship with water. Sitting along the Mystic River in southeastern Connecticut, its campus spans 19 acres and nearly 150 structures, including exhibition spaces and a re-creation of a 19th-century New England coastal town. Along the museum's waterfront, it has an active seaport and a marina where roughly 900 boats dock annually. For nearly a century, the organization has maintained a harmonious relationship with the river. Flooding caused by storms, high tides and heavy winds occurred occasionally, but were not cause for great alarm. However, with storms becoming more severe and sea levels expected to rise substantially in the coming decades, the museum faces a daunting challenge: how to stave off the inevitable. Planning has begun to protect the museum's history and properties, but the scope of the effort, as well as the costs, are immense. Nevertheless, the museum may have little choice. 'Twenty years ago, there might have been an inundation a few times a year,' Chad Frost, principal of the landscape architecture firm Kent and Frost, which has been working with the museum for two decades, said in a video interview. 'Now, we're seeing degrees of flooding on a monthly, sometimes weekly, occurrence.' The museum's location has made it especially vulnerable. It was constructed on the site of an 1830s shipyard built by three mariner brothers, George, Clark, and Thomas Greenman. They, like other entrepreneurs in the booming seafaring community of Mystic, took over low-lying and marshy lands whose gently sloping banks and proximity to the Atlantic Ocean were opportune for shipbuilding. When the museum was established in 1929 as the Marine Historical Association, a steady expansion began, with land filled in and bulkheads added along the river. 'This kind of development was happening along the entire Connecticut coast around 100 to 80 years ago,' Frost said. 'Now we know that fill settles over time. Add to that the fact that we didn't have the foresight to know about climate change and rising sea levels — areas once habitable are being forced to adapt.' Today, the majority of the campus is in a FEMA-designated flood zone. Among the highest points — at just 14 feet above sea level — are the museum's offices, which were originally the Greenman brothers' homes. 'It's a testament to how forward-thinking these mariners were,' said Shannon McKenzie, the museum's vice president of watercraft operations and preservation, in a video interview. 'They knew the river would be a threat long before people were concerned about sea level rise.' Flooding often submerges walkways throughout the campus, preventing visitors from accessing buildings and experiences. Some structures, especially those along the waterfront like the Thomas Oyster House — which operated in the thriving oyster distribution hub of New Haven from 1874 to 1956 and was donated in 1970 and placed on its current site on a museum pier in 1984 — also become flooded. About five years ago, museum officials took the first steps toward finding a way to protect the site. They started by inviting officials from the nearby towns of Groton and Stonington. 'It was the first time their town planners had a conversation about the rising river,' McKenzie said. 'It was a great eye-opener for us that we could be a service to the community by addressing this now.' Working with architects from Kent and Frost, the museum in 2020 began to assess the campus. Using FEMA's guidelines, which determine how high buildings must be above flood elevation, the team created several maps to understand the risks now and as sea levels rise. The Connecticut Institute for Resilience in Climate Adaptation, or CIRCA, estimates that levels will rise 20 inches by 2050. While based on tidal data from nearby New London, which is experiencing sea level rise considerably faster than the average global rate, Frost noted that all models predict a 20-inch increase at some point. 'It might not be 2050, but this isn't a question of 'if,' but rather 'when,'' he said. The study revealed that a 20-inch rise in sea level would make smaller, albeit more frequent, storm surges more destructive. 'It's very alarming,' Frost said. 'With this rise, a 10-year storm would be significantly worse than a current 30-year storm. And, as we've seen, these so-called 10-year storms are actually happening almost annually.' How to adapt is a complicated question. There are four main coastal strategies: fortification, building barriers to resist sea level rises and floods; accommodation, returning areas to marshland; elevation, raising buildings or the land; and migration, moving to higher elevation. The museum plans to use a combination of the four. Because its marina is active, it is not possible to move all operations away from the waterfront. The museum has a collection of more than 500 historic watercraft, many in that part of the campus. It includes the Charles W. Morgan, an 1841 whale ship that the museum said is the oldest remaining of its kind. Moored along the museum's Chubb's Wharf, the nearly 114-foot-long ship is a crucial part of the visitor experience. Guests can walk its deck and explore its claustrophobic interior, once filled with blubber, oil and grimy sailors. The museum can, however, move some buildings, and there is precedent for such an intervention. On the coast of Rhode Island, the Newport Mansions society was forced to move its Chinese Tea House 75 feet inland in 1977 because of a deteriorating sea wall. Other Newport structures, like the Hunter House, are under threat, prompting ongoing discussions. However, the locations of some buildings are as valuable as the objects inside them, limiting the options for climate resilience. The Mystic Seaport Museum has sought ideas and support, focusing on community outreach, engaging local leaders in planning, hosting architecture students and organizing conferences to discuss issues and solutions. The museum has assessed each structure's elevation and condition and created a system to rank importance. Historic buildings in their original context are deemed of highest value. Next are buildings like the Thomas Oyster House that have been moved from their original context. Of lowest value, and therefore with more latitude in terms of preservation, are modern constructions built to appear old. 'We now know which buildings we need to protect in their current sites, which ones we need to move higher, and which ones to potentially get rid of,' McKenzie said. 'It might seem surprising to let buildings go, but this campus has evolved continuously over the last almost 100 years, and making realistic decisions to adapt to sea level rising is part of that. It's a story that connects all of us, whether you call it climate change or not.' As it begins this work, the museum is facing another hurdle: the significant cost, likely tens of millions of dollars. It plans to split the project into three phases while fund-raising in between, a process expected to take decades. By then, the Connecticut resilience institute's expectation of a 20-inch sea level rise by 2050 may come to fruition. 'Is the Seaport moving with urgency? Yes, but it will take time to convince donors and permitting agencies that this work needs to happen, and it needs to happen now,' Frost said. 'This is a slow building crescendo that gets worse the longer we wait. The fact that the museum is acting before the crescendo builds is inspiring. 'The clock is ticking, but you'll never finish if you don't start, and we'll all have to start soon enough.'
Yahoo
22-03-2025
- Business
- Yahoo
Form 4684: How to Claim a Casualty and Theft Loss Deduction
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Form 4684 allows individuals, businesses and estates to claim deductions against any unexpected losses due to theft or disasters. These deductions can help reduce taxable income, but they come with specific eligibility requirements and limitations. In most cases, only losses caused by federally declared disasters or qualified thefts can be deducted. A can help you claim tax deductions for disaster or theft losses using Form 4684. Form 4684, titled Casualties and Thefts, is used to report financial losses that result from unexpected events, such as natural disasters, accidents or theft. The IRS distinguishes between casualty losses - caused by sudden and unusual events like hurricanes, earthquakes or fires - and theft losses, which result from criminal acts such as burglary or fraud. The deduction amount is limited by insurance reimbursements and a required $100 reduction per event for personal-use property. Additionally, the deductible portion of the loss must exceed 10% of the taxpayer's adjusted gross income (AGI). If you want to claim deductions for disaster or theft losses, here are seven general steps to help you get started: Download Form 4684 from the IRS website or obtain it through tax preparation software. Calculate the cost basis of the property, which refers to its original value before the loss. Determine the fair market value (FMV) before and after the event to assess the financial impact. Subtract any insurance reimbursement or compensation received from insurance claims, government assistance or settlements. Apply the $100 reduction per event and further reduce the loss by 10% of adjusted gross income (AGI) for personal-use property. Transfer the calculated loss to Schedule A (Itemized Deductions) if claiming a personal deduction. Attach Form 4684 to Form 1040 and submit it with your tax return. The loss must result from a federally declared disaster as designated by the Federal Emergency Management Agency (FEMA). The loss must be sudden, unexpected and beyond the taxpayer's control (e.g., floods, wildfires, tornadoes, earthquakes) and the damaged or destroyed property must be personal-use or business property that was not already compensated by insurance or other relief programs. Additionally, tax laws allow affected individuals to claim losses in either the tax year the disaster occurred or the previous tax year for potentially greater tax benefits. Examples of qualified disaster losses include: A home destroyed by a wildfire in a declared disaster area. A vehicle damaged by flooding in a FEMA-designated flood zone. A business property impacted by a hurricane, resulting in structural damage. Non-qualified losses, however, would include: Property damage due to wear and tear or gradual deterioration (e.g., termite damage). Losses from personal negligence (e.g., leaving a car unlocked and experiencing theft). Property damage without a federally declared disaster designation. No, except for qualified disaster losses, casualty and theft loss deductions require itemizing on Schedule A. However, for federally declared disasters, taxpayers may claim a standard deduction increase instead. To report a theft loss, taxpayers must provide proof of the event, including police reports, insurance claims, and fair market value changes. The same calculation method applies as for casualty losses, subtracting reimbursements before applying the deduction. If insurance payments exceed the original property value, the excess may be considered taxable income rather than a deductible loss. Taxpayers should report this on their tax return as a capital gain, if applicable. For personal-use property losses, there is generally no carryforward option beyond the year the loss occurred. However, business or investment-related losses may qualify for a carryover under different tax provisions. Filing Form 4684 allows taxpayers to claim a deduction for financial losses caused by sudden disasters or theft. But eligibility is often limited to federally declared disasters for personal-use property. To complete the form, you must calculate the total loss, subtract any insurance reimbursements, and apply the deduction limits set by the IRS. Accurate records and supporting documents are essential for a successful claim. Given the complexity of tax rules governing casualty and theft deductions, working with a financial advisor can help you navigate the filing process and maximize tax relief opportunities. SmartAsset's free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now. If you want to know how much your next tax refund or balance could be, SmartAsset's tax return calculator can help you get an estimate. Photo credit: ©Department of the Treasury Internal Revenue Service, © The post Form 4684: How to Claim a Casualty and Theft Loss Deduction appeared first on SmartReads by SmartAsset.
Yahoo
27-01-2025
- Politics
- Yahoo
Trump's visit to small-town North Carolina brings hope to hurricane survivors who lost everything
ASHEVILLE, N.C. – President Donald Trump's Jan. 24 visit to western North Carolina — his second since Hurricane Helene destroyed large swaths of the Southeast on Sept. 27 and his first visit since becoming president — brought hope to survivors on Friday. Fox News Digital spoke with multiple locals during Trump's visit to hard-hit Swannanoa, where houses along the Swannanoa River were literally swept downstream during the destructive hurricane exactly four months ago Monday. "It's been hell," Swannanoa resident Michelle, who wanted to be identified only by her first name, told Fox News Digital. Michelle lives in a makeshift camper park off a main road in Swannanoa, where she and about seven or eight other locals whose homes were destroyed in the hurricane are living in campers and tents donated by different charitable organizations. Hurricane Survivors Who Met Trump In North Carolina Share President's Words That Stuck With Them Many people are still struggling to find secure housing, Michelle said, noting that many families with children have received tiny home donations from charities, but they would not be enough for those families to live long-term. Read On The Fox News App Along with housing, many locals lost their jobs in the hurricane when warehouses and businesses were destroyed by flooding or other damage. 'A Big Relief': Nc Residents Describe Meeting With Trump After Feeling 'Ignored' Post-hurricane Emily Russell was seven months pregnant when her home near the river flooded up to her chest. She and her dog sat on a floating mattress and waited for help because there was no other way out. "It's just really been crazy since then. No help, really, except for volunteers and churches that we've been grateful for," Russell told Fox News Digital. "They've come, and they really helped us a lot because we had to gut the house and rebuild it. And then, like I said, I was pregnant at the time, so we had to hurry and try to get it at least livable before the baby came." "Of course, I applied for FEMA [aid] and different government assistance, but none of that really came through to help in any way," Russell added. Trump To Visit Battered North Carolina Towns Still Suffering Months After Helene: 'Treated Badly By Democrats' Many locals who spoke to Fox News Digital on Friday said that while they have received some help from the Federal Emergency Management Agency (FEMA), it is not enough, and there is too much red tape in applying for and actually receiving help, whether it be monetary or housing assistance. Numerous people across western North Carolina are still sleeping in tents and campers more than 100 days after the storm hit the area in the early morning hours of Sept. 27. Most campers on private property have been donated by local and national charities, such as Samaritan's Purse and Cajun Navy, which is working with Emergency RV to donate used and new campers. Others are staying in campers donated by the agency on specific FEMA-designated sites. Trump Warns Fema Faces Reckoning After Biden Admin: 'Not Done Their Job' Russell said she and other locals were excited that Trump was making his second visit to the town, which has a population of about 5,000. "The fact that he has come back, especially to Swannanoa … little nowhere town, and he's here … it just makes you feel hopeful that we are going to start getting some help and see a big change," Russell said. "We're glad he's here. We're hopeful. I just really think that he's the one that can make the big difference, and we're just excited. This little town has needed a little bit of help, so that's really cool." Trump Warns Fema Faces Reckoning After Biden Admin: 'Not Done Their Job' A Swannanoa resident who wanted to be identified only as Vicky, who also lost her home and is now living in a camper donated by a church group, told Fox News Digital that she was "excited" about the president's visit. "He was here in October, and he wasn't even president then," Vicky noted. When asked what locals need most, Vicky said more "housing would be great," or the financial means to get housing. "We did get our FEMA money, and we're putting it towards all this, which is nowhere near enough to cover everything," she explained. "We were out of debt. And as of right now, we're going to be back in debt for a home because we have no choice." Danny Bailey, or "Uncle Danny," as locals know him, also believes the new administration will help hurricane survivors get some relief. Fema Extends Transitional Housing Program For North Carolina Residents Displaced By Hurricane Helene "Even if he just helps us financially, or he gets people in here to say, 'OK, we're going to build you a house' … because what FEMA's done was good, but it wasn't good enough," Bailey said. "And the fact that he came here after the flood shows that he cares enough that he's gonna do something." Bailey lost his home and said two charitable organizations donated two campers for him to use and live in after the storm. Another man from Mexico who now lives in North Carolina helped clear debris on his property for free, Bailey said. The president spoke in two North Carolina towns during his Friday visit and asked a group of Swannanoa residents to take the mic and share their stories on his last stop before heading to California to visit wildfire-affected areas. HURRICANE SURVIVORS WHO MET TRUMP SHARE WHAT PRESIDENT'S VISIT MEANT TO THEM: "I'll also be signing an executive order to begin the process of fundamentally reforming and overhauling FEMA, or maybe getting rid of FEMA," Trump told reporters in North Carolina on Friday morning. "I think, frankly, FEMA is not good." Trump also promised his administration would step in and assist North Carolina to fix the damage quickly, vowing to "do a good job" for the state. Americans Spending Thanksgiving In Tents As Heat, Electricity, Food Still Hard To Find "We're going to fix it, and we're going to fix it as fast as you can," Trump said. "It's a massive amount of damage. FEMA has really let us down. Let the country down. And I don't know if that's Biden's fault or whose fault it is, but we're going to take over. We're going to do a good job." Hurricane Helene created billions of dollars worth of damage when it destroyed homes, farms and critical infrastructure like roads, bridges and power lines. Parts of highways connecting North Carolina and Tennessee have been closed since late September. More than 100 people died as a result of the hurricane in North Carolina alone, and the total death count is more than 230 across six states, including South Carolina, Tennessee, Virginia, Georgia and article source: Trump's visit to small-town North Carolina brings hope to hurricane survivors who lost everything
