Just this week the Boston Globe had a front page article about the re-drawing of our national flood maps. Several weeks ago there was a business section front page article about the impact of the new flood insurance requirements on businesses and homeowners and condominium associations.
So what’s Going On?
· After a decade of extremely high losses due to record storm activity FEMA (The Federal Emergency Management Administration) had all the flood maps re-drawn to reflect more recent storm data.
· The new maps are just being released and updated now. As a result of this re-mapping many homeowners are discovering that their property is considered to be in a flood zone when it was not in the past. And homeowners who were in flood zones could now be in higher risk zones than before.
· Additionally it was decided that that federal government would no longer subsidize the cost of flood insurance for homeowners causing their existing flood insurance costs to skyrocket.
Only provisional costs have been released and it will be a year before exact costs for flood insurance can be determined and even that the homeowner may have to provide an engineer’s map called a site elevation map to get the proper pricing.
This is a very complicated issue with more questions than there are answers. If you believe that your property is in a flood zone or may be now be in a flood zone reach out to your insurance agent and they can help you sort it out.
If you are considering selling or buying a house that may be in a flood zone get the facts now; insurance can cost from $5000 a year up to $25,000 and beyond. And today’s costs may change dramatically in the next 12 – 18 months as all the new regulations and policies go into effect.
As we learn more we will keep you informed. Feel free to call me to talk about how flood insurance costs may impact you today. We are here to help.
Realtors: if you have a buyer or a seller who needs a flood determination prior to listing or making an offer – give us a call and we will do the research for you!