Solutions Value: ≈$120,000 in Added Property Value | ≈$7,200 in Annual Premium Savings
NFE Solution: FES, LOMA, Modeling Services
This case study explores how a multifamily building in Oklahoma, OK, was successfully removed from a challenging flood zone via Letter of Map Amendment (LOMA). The solution removed lender-mandates for flood insurance, allowing the Client to realize an annual savings of nearly $7,200 and an increase in property value by an estimated $120,000.
During a cold call to the client, the NFE Account Representative discovered that only one of the apartment buildings was clipped by the A flood zone and was required by the lender to carry flood insurance on that building, costing the client approximately $7,200 per year. The client had engaged another engineering firm in the past to help with removal and did not have success but was interested in exploring additional options to reduce or remove the flood insurance expense for the property.
Due to the complex and understudied nature of A-Zones, NFE performed a Flood Expert Survey (FES) to gather building-specific data, accurately assess the situation and explore potential solutions. After completing the FES, NFE’s engineering team analyzed the data, completed complex modeling, and qualified the building for a LOMA. Upon approval by FEMA, the LOMA removed the building from the special flood hazard area (SFHA) and into an X Zone.
As a result, the client saved approximately $7,200 annually on flood insurance costs and saw an increased property value of nearly $120,000 assuming a 6% CAP rate.
This project highlights the importance of accurate flood zone identification and the significant financial implications it can hold for property owners. Through expert analysis and smart solutions, NFE was able to help the client realize substantial annual savings and significantly increase the value of their property.