Beachwise Real Estate Pro Tip for Buyers and Sellers

How to save hundreds, if not thousands, of dollars on your required flood insurance - Policy Assumption


The Beachwise Real Estate Team is always looking for ways to help our buyers and sellers save time and money in a real estate transaction.  Having to obtain flood insurance is one of those costs that buyers could end up paying way more than they must.  Through the process of POLICY ASSUMPTION buying a home in a flood zone may not have to be as costly as you think.  Policy Assumption is allowed by the National Flood Insurance Program (NFIP).  It occurs when the seller’s existing policy is transferred to the new buyer at closing.  Instead of going through a new underwriting process with NFIP the buyer adopts the seller’s policy that is already in place. 

Benefits of Policy Assumption – Reduces Costs and Saves Time!

Here’s how:
The buyer does not have to go through the hassle of meeting underwriting guidelines.

The buyer avoids the cost of an elevation certificate.

By assuming the existing policy, the buyer locks in the low rate already in place. 

Premiums for policies are paid annually, so by assuming the existing policy buyers don’t have to worry about paying the premium until the renewal date thereby reducing costs at closing.

Is There a Catch?

The only downfall may fall on the seller.  By doing a policy transfer the seller is not given a refund from the carrier because technically it will remain in effect.  So, if the seller paid the premium 6 months prior to the closing date normally a refund for the remaining 6 months would be due.  The good news is that this can be worked out separately amongst both parties, especially if the buyer is receiving a benefit by assuming the policy.  The buyer could give the seller a credit at closing for any premiums that the seller would normally have been refunded.

How To Do a Policy Assumption

The process is simple but takes some time.  Both parties will need to fill out some forms and allow time for the insurance carrier to review and clear.  We recommend starting at least 3-4 weeks prior to the closing date from previous experiences. 

For more information about this and other Pro Tips from Beachwise Real Estate please visit us at or our blog page

You can also contact Kristin Vincelli the Rollerblading Realtor at 727-686-1596,,  and Stephen Vincelli at 727-430-1995,

See you at the beach!

At the OPAL SANDS hotel enjoying lunch and the beautiful view!