When you sell insurance policies, you know better than most that navigating the world of insurance takes je ne sais quoi. With all insurance certain elements can be difficult to understand; for flood insurance that element is Elevation Certificates (EC). To make those conversations easier for you, here are answers to the all the questions your clients are asking about elevation certificates.
What is an Elevation Certificate?
- An Elevation Certificate is a document providing critical information about a property's elevation in comparison to the estimated height of floodwaters in the area.
What information does an Elevation Certificate provide?
- To give a comprehensive outline of a building's elevation, ECs contain the following key pieces of information.
- Elevation Data: First and foremost, as the name implies, an elevation certificate records information about how elevated a building is. This measurement uses the building's lowest-level floor, basement or crawlspace–and measures that in comparison to the property's base flood elevation (BFE).
- Building Information: This includes details about the structure of the building (the number of floors for example), and information about where the building is located.
- Flood Zone Information: To accurately understand a property's risk, it's important to understand the surrounding area. Information about the flood zone is recorded on an elevation certificate as well.
Why do Elevation Certificates Matter?
- Elevation certificates are essential for understanding a property's flood risk and you can use them to help determine the cost of your clients' flood insurance premiums. The greater the difference between a client's bottommost floor and the BFE, the lower their premiums.
For insurance agents, understanding the significance of an EC is crucial. It helps you provide accurate information to your clients, helping them understand their flood risk and the factors that influence their insurance costs. Additionally, an EC can sometimes be the deciding factor in whether a property owner can obtain flood insurance at all, especially in high-risk areas.
With elevation certificates in the bag, you're better equipped to help your clients understand their insurance needs. For all their other questions, visit the find tools, talking points and more on the NFIP's Resource Library. Keep up to date about all things flood insurance by signing up for email updates from the NFIP.