Some Boston-metro area residents might be in for a rude awakening: For the first time in decades, FEMA is re-drawing its flood maps.
That move will re-designate some homes in four Bay State Counties – Middlesex, Bristol, Plymouth and Dukes – as being located in a flood plain. If those homeowners have mortgages, federal law requires them to get flood insurance. Others may find the requirement lifted, if the Federal Emergency Management Agency deems their homes to be in a safer zone than previously thought.
Those changes could have ramifications for those homes’ resale potential when they become final next summer, but the new maps directly impact banks: It falls on them to figure out who those changed-status homeowners are, and to break the news.
“You’d think, ‘Well you’ve already made a loan, what can you do about it?’ But the law does require it,” said Mike Winton, an assistant vice president with Watertown Savings Bank.
Winton said a third-party servicing company scours the maps and alerts the bank about which properties’ status has changed. That will send residents to their insurance agents, who will most likely get them a policy through the federal National Flood Insurance Program.
Most FEMA flood maps are about 30 years old, said regional FEMA official Lauren Pawlik. Middlesex County has seen dramatic development in that time, so while the agency doesn’t track how many individual buildings will be affected, it’s safe to say the maps will show substantial changes for the densely populated, stream-and-pond dotted county.
David Knowles, a hydrologist with the local FEMA office, said the agency redrew maps for Middlesex County, starting along the Charles River and working its way up – towns such as Cambridge, Winchester and Belmont will also be affected.
The re-drawn maps are posted online, but nothing will be finalized until after a period of public comment, including scheduled informational meetings in individual towns. FEMA currently estimates the process will be wrapped up by June.
Agents like Jeanne Borelli of Belmont-based Borelli Insurance will likely handle many of the new flood insurance customers. Borelli says homeowners do not usually ask for flood insurance, and resist the idea of buying it. “They see it as just another bill.”
The federal flood plan usually costs about $3,000-$4,000 in premiums, Borelli said, although the range is enormous and depends on where the home is located because FEMA has different variations for flood risk, and that requires different levels of protection. The maximum insurance amount is $250,000, she said.
Steve Savarese of an Arlington-based Century 21 Adams, said flood insurance issues do not come up often in his business. But while most of these homes are in desirable areas people are willing to pay for, a flood-zone designation might have some impact, especially if FEMA assigns them a high level of flooding risk.
“If it does require a higher level of insurance, a more expensive insurance, then yes, it would affect the marketability, but I don’t think it would be dramatic,” he said.
