A home can qualify for grandfathering two ways. If the homeowner has carried continuous flood insurance on their home while the area that they live was rated as a low risk and the area is changed to a high risk flood zone, the policy will remain on what is called a preferred policy. They would be given a lower premium than others that purchase a policy after the area has been changed to high risk. The other form of grandfathering is to be grandfathered for built in compliance. If the date that the home had its last substantial improvement was while there was a flood map in place that rated the area that they live as low risk and the area rating was changed to high risk then you will eligible to be grandfathered into a regular policy. This would potentially save hundreds of dollars per year on your flood insurance.
It is important that consumers work with an experienced agent to ensure that their policy is properly rated and that they are receiving the premium that your home qualifies for. If a home is currently located in a high risk flood area then having an experienced agent could also simplify the process of a flood insurance purchase.
Although flood insurance if federally controlled and all NFIP flood insurance policies offer the same rates, consumers may want to call a few agents prior to purchasing a flood insurance policy. Not all agents are familiar with the process of qualifying a home for grandfathering for being built in compliance. If the home is located in a high risk flood zone consumers will see a significant difference in the quotes that they receive based upon the way that the policy is rated.