I've just attended a seminar on new flood maps and how they will impact homeowners' insurance on Martha's Vineyard. The new maps increase the area of potential impact and future real estate sales. If a home is located within one of the zones and the buyer obtains a mortgage to purchase the property, the lending institution will require a certificate of elevation. A licensed land surveyor and several other professionals are licensed to do these at varying costs, depending where GIS sites are located, etc. This will create an added cost to the buyer/seller (not clear who should bear this cost yet). This certificate can delay the closing process by weeks. The insurance premiums will continue to increase over the years - as approved by the government, which guarantees the first $250K in these policies. The government (FEMA) and the insurance companies have depleted their reserves with the Hurricane Katrina and Sandy cleanups/payouts. So, the government has agreed that they can: increase the flood plains and insurance rates.
If there is no mortgage on the property, there is no requirement (as of today) for that homeowner to purchase flood insurance. However, if you currently have flood insurance on your property, expect the rates to increase, perhaps substantially.
The new maps are still a year or so away from being finalized as each municipality has the right to review and revise, plus there is an appeal period. For more information, please contact your insurance company. They will be able to definitively identify how this
may impact you and your home.
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