In late 2024, the Federal Emergency Management Agency (“FEMA”) revised the Flood Insurance Rate maps covering our area (the first time in over 40 years). These flood maps are used by lenders to determine whether a borrower is required to maintain flood insurance on the property. Many areas were removed entirely, such as parts of River Street, Ellicott Street, Union Street, Kingsbury Ave, Montclair Ave, and Rose Road. Others were downgraded from a higher to lower risk category, such as parts of W. Main Street. Other areas were newly added or upgraded, including parts of School Street & Swan Street.

                Many buyers, especially first-time home buyers, don’t contemplate the impact of a property being in a flood zone, but it can make a real difference. According to FEMA, the average flood insurance premium is $700 per year, which works out to just over $50 per month. While not significant, it is an additional cost that the buyer must stomach over the life of their ownership of the property.

                 In addition, many buyers rely on the property condition disclosure statement provided by the seller in a transaction to determine whether the property will require flood insurance. However, this strategy is risky.  Even if the seller discloses that they do not maintain flood insurance on the property, this does not mean the property is not in a flood zone or that the buyer’s lender will not require flood insurance.  There are a variety of reasons why the owner of property may not maintain flood insurance, most commonly, that they don’t have a mortgage and thus have the freedom to choose not to pay for a policy. So, relying on the fact that the seller does not maintain flood insurance can lull buyers into a false sense that they will be spared from this additional cost, and can be a costly mistake you find out well into the transaction.

                Ultimately, the buyer is responsible for confirming whether the property is in a flood zone and whether flood insurance will be required. Thus, if you’re purchasing property, it would be wise to check with your lender or review the flood maps yourself to determine whether flood insurance may be required. A link to the updated maps can be found here: https://experience.arcgis.com/experience/bcac825f0557410aa57a350b0c293cb2/