Did you know? The MCC can answer all your flood questions!
In 2019, the MCC announced many new services, programs and initiatives. But most importantly was the announcement of our ability to answer your questions on flood insurance. The MCC has two key services to help you Know Flood:
Know Flood Insurance Service: The MCC knows the value of understanding flood insurance. Have a question about flood insurance? You’ve come to the right place. Over the years, we have fielded thousands of inquiries on questions about flood insurance and realize there is no single place for stakeholders to get simple, easy answers for flood insurance questions. That’s why the MCC runs our flood insurance service center, run by MCC flood expert Art McKinney. Art will do his best to answer broad and specific flood insurance questions, or help point you in the right direction. Simply fill out the form on our services page, attach any helpful documents and we will get back to you during our posted hours of operation.
Ask a question HERE Map Service: On our homepage is our Know Flood Map Service. Knowing your flood risk is now as easy as entering an address. The Know Flood Map Service has the entire nation’s digital flood maps online. Simply enter your address in the search bar, and the map pins your building’s location. A box then pops up to introduce you to one of our other services if you are interested. The map search is free and gives you the basic information necessary to assess your flood risk and insurance needs and tell you your flood zone. The service is available on our website’s home page.
COMING SOON: Due to popular demand, the MCC will be opening a Know Flood Forum, a community to post your stories, questions and more. More to come in the Quarter 2 newsletter.
CRS Success: Setting Precedents In Community Outreach
The most costly and frequent natural disaster in the United States is flooding. Recent years of U.S. disaster data tells this story. In 2017, for example, 80% of FEMA’s disaster spending was on flood-related events. Because of the exposure that flooding presents, nearly 1,500 communities around the country participate in the Community Rating System (CRS) which represent 70% of National Flood Insurance Program (NFIP) policy holders. CRS is a program within the NFIP which reduces flood risk and lowers flood insurance premiums when a community performs specific tasks outlined in the CRS manual, revolving around community resiliency. CRS communities are recognized as being more resilient and more compliant with NFIP floodplain management standards.
As a CRS participating community implements different CRS activities, points are accumulated. For every 500 points, a community moves up in class. Every class increase saves National Flood Insurance Program (NFIP) policy holders in high risk flood zones 5% on their flood insurance and makes a community more resilient against flooding. Class 10 gives no flood insurance discount community-wide, and Class 1 translates to a 45% flood insurance discount community-wide. In Massachusetts, a community can’t go beyond Class 7 due to building code restrictions.
CRS awards a substantial amount of points if a community organizes its outreaches into a central document called a Plan for Public Information (PPI). In the beginning of 2018, the Town of Marshfield established a committee specifically assigned to develop a PPI. At the same time, the PPI Committee was tasked with the development of the Town’s updated Hazard Mitigation Plan.
The MCC would like to invite all community officials involved in or interested in the Community Rating System (CRS) on the South Shore to join us for the first meeting of the South Shore CRS Users Group.
The goal of the South Shore CRS Users Group is to connect and guide local communities through CRS, share best practices, and work together for better floodplain management.
The Users Group meeting will consist of: · An introduction to the Users Group · Best practices and where local communities get their points · Overview of all CRS activities · Discussion and networking with local communities · Planning and discussion of future meetings and interests
Please reach out to jrossi@knowflood.org for the date, time and place.
Op-Ed: ASBPA Rleases Local Funding White Paper
By: ASBPA
American Shore & Beach Preservation Association (ASBPA) has published a white paper explaining ways communities can fund coastal management projects, entitled “Local Funding for Coastal Projects: An Overview of Practices, Policies, and Considerations.”
The paper identifies regional characteristics and local considerations communities must assess when determining how to raise revenue for beach and coastal restoration projects. The report then explains taxes; fees and other sources of revenue commonly used by communities for beach projects; and provides an overview of emerging financial tools which can make existing revenue go farther in support of local coastal management efforts.
Funding tools described in the report, include: -Special Taxing Districts -Erosion Control Districts -Geologic Hazard Abatement Districts -Inlet Management Districts -Inland Navigation Districts -Sales, Excise, and Use Taxes -Tourism/Bed/Occupancy Taxes -User Fees
Additionally, the report describes “emerging” funding tools that look at how revenue raised from the above activities can be expanded through Green Bonds, Environmental Impact Bonds, Catastrophe Bonds, Parametric Insurance, and Resilience Bonds.
ASBPA hopes this paper will be a baseline for local officials, help consultants guide clients, and continue the discussion on ways communities fund important coastal projects. As the competition for coastal funding grows and the need for coastal restoration and adaptation projects increases, having a number of funding options at hand can mean the difference between a successful and effective coastal project and one that stalls due to revenue shortfalls or uncertainty in crucial funding.
The white paper is available online at http://asbpa.org/get-involved/funding/ in a text document, report format, and 2 page fact sheet. It will also be published in the second edition of Shore & Beach.
Sue Sullivan is a top producing realtor for 15 years with Coldwell Banker in Scituate and is ranked as the top 15% of Coldwell Banker professionals worldwide for production and exceptional service. Susan became part of the MCC Board of Directors in 2016 to bring her expertise in real estate.
Sue’s Flood Real Estate Tips Be Aware of Substantial Improvement Triggers
Are you considering purchasing a property in a high risk flood zone with the intention of renovation/repair? Are you aware of the FEMA, state and local requirements in order for you to get your permits?
If the cost of your renovation or repair project exceeds 50% of the assessed value of the building (not including the land) it becomes a “substantial improvement”. THIS THRESHOLD IS VERY SIGNIFICANT. If the threshold is exceeded, the entire structure must comply with the most current regulations for its specific flood zone. This could mean the structure must be completely elevated.
You are permitted to have a professional appraisal completed on the property to determine the value of the structure (not including the land). This appraisal valuation will be a current market value, more accurate and typically higher value than the town assessed value.
My example is a property in Scituate across the street from the ocean. The buyers would prefer not to elevate the building. They would like to renovate and repair instead.
In order to qualify for the building permit the buyer must abide by the 50% assessed value requirement. The town assessed value of the building (not including the land) at $54,700. A building permit will only be issued for work not to exceed $27,350 (50% of assessed value). Quotes from licensed professionals are required to support the cost of renovation and repair. The problem: $27,350 will not be enough to cover the cost of the renovation and repair.
The buyer paid for a professional appraisal to be done on the building (not including the land). The appraised value is $152,000. With the appraisal, the buyer now qualifies for a permit with work not to exceed $76,000. This will allow the buyer enough funds to make the necessary renovations and repairs.
The buyer plans to also make flood mitigation improvements to the structure while renovating. Flood openings will be added to the foundation and utilities relocated to the second floor. A much better situation for potential flooding. Happy new homeowner and a more protected structure!
*Buyer beware!! When purchasing property in a flood zone, the regulations are complex and specific. Consult experienced professionals and refer to your building department for guidance
FEMA announces renewal of its flood reinsurance program
FEMA has announced it has secured reinsurance to protect the NFIP, securing $1.33 billion of protection. The coverage was secured from a panel of 27 reinsurance companies, and protects the NFIP from events beginning from January 1, 2020. The NFIP paid $205 million this year versus $186 million previously.
What is reinsurance? Reinsurance is insurance for insurance- it’s when an insurance company transfers some of its exposed risk to other insurance companies. This is a practice FEMA has engaged in since 2016, one that is commonly used with other insurance companies.
Tim Carty owns MurphyCarty Insurance Agency, located in Scituate Harbor. His objective is to support policy holders, minimize their risk, and help navigate them through the flood program. Tim has an MBA from Boston University and an undergraduate from Babson College.
Tim’s Flood Savings Tips Cancelling Flood Insurance? Are You Sure?
Many people maintain a flood policy only to satisfy a bank’s requirement for coverage, have never experienced an actual flood, and are quick to cancel a flood policy altogether when their mortgage is paid off. No mortgage, no bank, no flood policy, no problem. Save money. Move on.
But cancelling that policy may be a hasty decision. A better solution might be to reduce but not eliminate coverage: save some money, but accomplish two things: maintain some coverage and plan for the future. Coverage might be sensible: the NFIP (National Flood Insurance Program) has determined a dwelling’s risk of flooding. A flood may never happen, and a dwelling may never see water, but a flood policy is financial protection for that unimaginable and unforeseen time. Climate change and storms seeming to increase in intensity only make the argument for some coverage to be prudent.
A FEMA-backed policy, in any amount, is also transferable to a buyer the day a home is sold. A home with an existing flood policy adds credibility to a listing, and helps sell a home. Which home sells more quickly? The one with a grandfathered flood policy or the similar home down the street requiring a newly written (and usually more expensive ) flood policy? Easy answer…
So some coverage might be sensible and smart. Peace of mind is one thing, selling your home quickly is another positive. Flood premiums are not going down any time soon: think to evaluate your situation with your insurance agent before pulling the plug on coverage. It could save you thousands of dollars at the end of the day.
Note from the Chair
2020 starts with a focus from the MCC on CRS, grants, and fundraising. But CRS has become a major focus for the MCC this year. This newsletter has multiple articles and events focused on CRS, and its growth in our region is critical. Marshfield has been a leader in CRS since CRS’s beginnings in 1991. Doris Crary, MCC Clerk on the Board of Directors, pioneered Marshfield’s involvement, and took one of the first CRS trainings in 1992. Since then, CRS has been a major part of the Town, and our mission is to now show other communities how to be effective in it. As insurance premiums rise, and our towns become more susceptible to flood risk, CRS will become more critical for our coastal and inland communities. Along with CRS, our overall focus is community resiliency through better floodplain management. In 2020, we will continue to join with partners and formulate solutions for our flooding pandemic. Talk to us on how to get involved more in CRS.
Joe Rossi Chair and Executive Director Massachusetts Coastal Coalition
