I have a client that lives in the Satuit Trail neighborhood, off route 3A in Scituate. She has owned the home for 28yrs, mortgage is paid off. She has an equity set up in order to be a cash buyer when she downsizes. This allows her to write an aggressive offer with no home sale contingency. She can buy the smaller house and sell her existing home after. As long as she does not access her equity line she has no payment. The money just sits collecting interest.
She was recently informed that she must obtain flood insurance. The quote from her insurer is $1,500-$1,800 annually. For any reduction to the cost of the policy she would need to obtain an elevation certificate, $1,000-$1,500. If she wants a LOMA filed on her behalf, it will be an additional cost of $1,000.
The lot is over an acre of land with a portion of it abutting Tack Factory Pond. The pond is truly quite a distance from the house. At its highest point, with excessive rainfall, the pond dose not rise to a level that floods the lot. Even with the water table abutting a portion of the lot, they have never even experienced water in the basement. This property should not be in the flood plain. If that house is overrun with water from the “pond” we are all in trouble!
This is a very frustrating situation, especially for a person entering retirement. Thousands of dollars must suddenly be spent for a problem that does not exist. This is flood failure. This is the real frustration homeowners experience daily. A reason many homeowners are turning to private policies or opting for no coverage once the mortgage is paid off.
Thankfully she reached out to me! I referred her to a local flood expert that recommended a small private policy to satisfy the bank at an annual cost of $500. No elevation cert, no LOMA, just common sense.
