IN THE FLOOD MAP GAME – SOME WINNERS, SOME LOSERS

After years of speculation, it is about to happen.  The Federal Emergency Management Agency (FEMA) is updating the maps that determine the cost of flood insurance for property owners in flood plains.  While recent news releases have focused on changes coming to flood maps in portions of Montgomery County, I believe residents throughout the Delaware Valley would be wise to stay abreast of changes to flood maps that could impact properties they own.  Indeed, some 2,068 properties in Abington, Hatboro, Horsham, Upper Dublin, Lower Moreland, and Upper Moreland will be newcomers to the flood plain based on an analysis by the Montgomery County Planning Commission of FEMA’s preliminary map, which is expected to be adopted in final form next year.  Interestingly enough, another 2,345 properties in those municipalities will no longer be located in high-risk flood areas.

If you have a mortgage on your property, more than likely your lender will require you to obtain flood insurance if you are now deemed to be in a flood plain.  Whether you are required to take this action by your lender or not, if you are in a flood plain, having flood insurance protection may be as important as having fire insurance coverage for your home or business.  If you are fortunate enough to discover you are no longer in a flood plain, you may well be able to drop this coverage completely, although you will need to initiate this discussion with your lender, as it is not likely they will contact you in this regard.

The average premium for flood insurance purchased through the federally underwritten FEMA National Flood Insurance Program is $550.00 and $600.00 per year.  Since the new flood plain maps were created with more modern technology, Montgomery County Planning Commission’s Chief of Environmental Planning explains that someone new to the list has really always been in the flood plain.  While that makes sense, it would be counterintuitive to think that the development throughout the region had no impact on this situation.  Whatever the cause, be sure to stay on top of this situation as it relates to your properties, and contact me if you need help in determining which side of the line you are on.