My clients are buying an ocean front second home in Marshfield. The owner paid her mortgage off 7 years ago and canceled her FEMA policy. The property is currently in a VE zone. However, when the policy was canceled, all grandfathering was lost.
When the buyers went to purchase flood insurance they were quoted $4,200 – $4,500 cost with a $10,000 deductible. If the bank won’t allow the higher deductible the policy would be even more expensive.
If the seller had kept just a small FEMA policy, the buyers flood insurance would have been approximately $1,500 annually.
I referred the buyer to the flood insurance experts, Murphy Carty Insurance. They were able to find a private insurer willing to cover the property. The annual policy will be $1,600.
**Please note: Private insurers will not provide coverage to all properties
You may not be thinking about selling your home now, but please keep in mind your property is much less attractive with an enormous flood insurance policy. The value of your property is negatively affected. Keep a small FEMA policy to protect your investment for yourself and your heirs.