Local Homeowners Experience With Flood Insurance Requirement

Did you see the article in the Forecaster regarding a local family's requirement to maintain a flood insurance policy? If not, click the link below to read about their story.

http://www.theforecaster.net/content/pnms-femamaps

There are many lessons to be learned by this story.

1. You need to know your current flood zone.

2. You need to know your proposed new flood zone per the changes coming to every community in Maine. Go to your town hall and ask about your new zone.

3. You need to know if your mortgage is with a federally regulated or insured lender.

4. You need to know the annual cost of a flood policy for your property based on the current zones.

5. You need to know if your new zone makes sense or was an error made in the recent review of the topographical maps.  If an error has been made you need to start addressing it NOW before you are hit with a force placed insurance policy by your mortgage company. The mortgage companies are at the mercy of the flood zone maps and are required by law to require their mortgage holders to carry flood insurance on properties that are in a high risk area if they are federally regulated or insured.

6. You need to take the necessary steps to prepare yourself and educate yourself on this topic. One way to prepare yourself is to do the research and if you find that your new zone is going into a high risk flood zone you can buy your flood insurance before the new zone goes into effect. By doing so you can "grandfather" your old zone. Premiums will change but not as much as if you allow the new zone for the remainder of your mortgage years.

Knowledge is power and a little time spent now will prevent more money being spent later.
Call a local insurance agent for more information.