Unlocking Hidden NOI in Flood Zones
The most fundamental goal of any investment property is to increase its Net Operating Income (NOI).
Flood Insurance and NOI Increase
Properties in the Special Flood Hazard Area (SFHA) must carry flood insurance. Many investors may not be aware of engineering solutions that can reduce or remove the need for flood insurance, which can immediately increase net operating income (NOI).
Reclassification and Flood Insurance
A Letter of Map Amendment (LOMA) can remove lender requirements for flood insurance. Reclassification to an X-zone does not guarantee the property will never flood, but it gives investors more options for flood insurance coverage. With a reclassification, investors can discuss the best coverage for the property with their insurance broker.
Engineering Solutions and Flood Insurance Premium Reduction
There are engineering solutions that can provide additional information to a flood insurance carrier to improve policy ratings. These solutions can reduce the overall flood insurance premium, leading to instant NOI increases.
Contact National Flood Experts for a complimentary review of your property. We can identify engineering solutions and reclassification opportunities to reduce or eliminate flood insurance requirements. With our help, you can unlock hidden NOI in flood zones and maximize your property's potential.