Visio calculates Debt Service Coverage Ratio (DSCR) by dividing PITIA (monthly principal, interest, taxes, insurance, and association dues) by the gross monthly rent. Often, borrowers try to reduce their PITIA costs in order to lower their monthly expenses and get better interest rates. While we strongly advise not cutting back on insurance and always having the highest quality dwelling policy, we found a golden way for landlords in flood zones to save thousands or more.
AmeriFlood Solutions provides property owners across the country with a risk-free opportunity to reduce flood insurance costs, improve coverage, increase asset values, and proactively manage flood risk. Boasting large clients like Invitation Homes, Fairfield Residential, Starwood Capital, and Greystar among many others, to-date, AmeriFlood Solutions has recaptured over $10 million in flood insurance savings and added more than $140 million in real estate value. Here’s an overview of their services and how they work:
- Flood Risk Evaluation (FRE): clients receive a complimentary assessment of a property’s high-risk flood designation and the unique characteristics of the property structures. This includes a comprehensive report identifying the flood source, Special Flood Hazard Area (SFHA), levee, and other type of flood control systems proximity, current, and historical Flood Insurance Rate Map (FIRM) data.
- Flood Risk Management: the process of flood zone reclassification is used to help property owners obtain flood coverage commensurate with the actual flood risk of the property. This can yield significant ROIs and increase property value by eliminating unwarranted flood insurance requirements.
- Premium Reduction: the identification of legally available credits and rate options for buildings correctly designated in Special Flood Hazard Areas (SHFA). This service also can significantly increase property value.
- Elevation Certificates: an audit of new and existing elevation certificates. Essentially, the National Flood Insurance Program (NFIP) requires elevation certificates to determine an actuarially sound flood insurance rate, and errors or omissions lead insurance agents to mis-rate flood insurance policies. Enter AmeriFlood Solutions to perform an audit and make sure everything is accurate.
Curious to see if AmeriFlood can save you money (risk-free)? Call Michael Freedman, President at 561-922-9735 x 101 or visit their website at AmeriFloodSoultions.com. Want more ways to improve your DSCR, increase monthly cash flow, and maximize your rental profits? See our blog category Maximizing Rental Profits.