NJ Residents Flood Insurance

Any reconstruction, rehabilitation, addition, or other improvement of a building, the cost of which equals or exceeds 50 percent of the market value of the building before the "start of construction" of the improvement. Substantial improvement includes buildings that have incurred "substantial damage," regardless of the actual repair work performed. The term does not, however, include either any project for improvement of a building to correct existing state or local code violations or any alteration to a "historic building," provided that the alteration will not preclude the building's continued designation as a "historic building."

Building and Contents Deductible:

Deductibles:

A standard $1,000 deductible applies in all non-Special Flood Hazard Area (SFHA) Zones. The standard deductible for Post-Firm construction is $1,000 and $2,000 for Pre-Firm construction, and structures in the emergency program. Optional deductibles may be applied to policies insuring properties in either the regular or emergency program.

Buy-Back Deductibles:

Policyholders who wish to reduce their deductibles from the standard deductibles of $2,000 for Pre-Firm SFHA risks may opt to purchase separate $1,000 deductibles for building and contents coverage, for an additional premium.

Deductible Options for Single Family and 2-4 Family Building and Contents Policies:

Building / Contents	Building / Contents
$1,000 / $1,000	$4,000 / $1,000
	$4,000 / $2,000
$2,000 / $1,000	$4,000 / $3,000
$2,000 / $2,000	$4,000 / $4,000
$3,000 / $1,000	$5,000 / $1,000
$3,000 / $2,000	$5,000 / $2,000
$3,000 / $3,000	$5,000 / $3,000
	$5,000 / $4,000
	$5,000 / $5,000

Deductible Options for Single Family and 2-4 Family Building Only or Contents Only policies:

Building Only	Contents Only
$1,000	$1,000
$2,000	$2,000
$3,000	$3,000
$4,000	$4,000
$5,000	$5,000

Deductible Options for Other Residential and Non-Residential Buildings:
*Same deductibles apply for building only and contents only policies.

Building / Contents

$ 1,000 / $ 1,000

$ 2,000 / $ 2,000

$ 3,000 / $ 3,000

$ 4,000 / $ 4,000

$ 5,000 / $ 5,000

$10,000 / $10,000

$15,000 / $15,000

$20,000 / $20,000

$25,000 / $25,000

Elevation Certificate:

An elevation certificate is required for most Post-FIRM special flood hazard area risks. They are optional for non-basement buildings or buildings without an enclosure located in Zones AR, AO, AH, and unnumbered A (no estimated base flood elevation); however, rates may be significantly higher. Elevation information must be certified by a registered engineer, architect or surveyor.

Certificates must include the Base Flood Elevation (BFE), diagram number, lowest adjacent grade elevation, and certification date.

Pre-FIRM risks may be rated on a Post-FIRM basis if an elevation certificate is submitted. Post-FIRM rates are generally cheaper if the lowest floor is at or above the base flood elevation.

Flood Proofing Certificate:

Purpose & Eligibility:

- In certain circumstances, flood proofing may be permitted as an alternative to elevating to or above the Base Flood Elevation (BFE); however, a floodproofing design certification is required. Certified floodproofing may result in lower rates.

- Non Residential buildings in any community, in all locations except V-Zones, may be floodproofed in lieu of elevating.

- Residential buildings may be floodproofed only if they have basements, are located in Zones A1-A30, AE, AR, Ar Dual, AO and AH, and only if they are located in communities specifically approved and authorized by FIMA. Contact TFIA for a list of the approved communities.