Solutions Value: ≈$100k+ in Annual Premium Expenses Avoided
NFE Solution: LOMA; FES
The Client wanted to explore ways to reduce or eliminate flood insurance expenses prior to finalizing their acquisition of a 36-building multifamily property in Canton, MI. Having worked with NFE in the past, the Client’s insurance agent referred this Client to us to review the property and find possible solutions.
For this 36-building multifamily property in Canton, MI, NFE provided a comprehensive solution to the Client's challenges. First, NFE initiated a complementary desktop engineering review to identify potential avenues for removing the lender's flood insurance mandate. Based on the initial assessment, NFE recommended conducting a Flood Expert Survey (FES) to gather property-specific data and confirm the eligibility for a Letter of Map Amendment (LOMA).
NFE performed the FES and analyzed the findings, concluding that all buildings qualified for a LOMA. Leveraging our expertise, NFE prepared the case and submitted it to the Federal Emergency Management Agency (FEMA) for approval. Thanks to NFE's efforts, the LOMA was approved, removing the property from the high-hazard flood zone and eliminating the lender requirement for flood insurance prior to closing.
With the LOMA in hand, the Client's lender did not mandate flood insurance for the property and as a result, the Client avoided hefty annual premiums and an excess policy. The project improved the property's net operating income (NOI) and increased the property's value on Day 1 of ownership.