Plum Island Flood Insurance

If you live on Plum Island or are looking to purchase a home there, you should become familiar with Plum Island flood insurance options. If you are in a flood zone, you may be required to purchase flood insurance. If you are not in a flood zone, you may still want to purchase a policy for added protection and peace of mind.

Federal Guidelines

There is no private flood insurance; all Plum Island flood insurance (and flood insurance throughout the US) is provided by FEMA and has been heavily subsidized by taxpayer dollars for years. After Katrina and Sandy, The Biggert/Waters Act was passed by an unusual bipartisan vote to curb the huge deficits cause by flood damage claims and put a stop to the subsidies. This proved to be dramatically unpopular among the affected population, and was amended effective May 1, 2014. The legislation around flood insurance is complex and difficult to interpret, and the future of the program is unclear. Anyone considering purchasing a home in a flood zone needs to consult with a knowledgeable insurance agent to understand their premium expectations on the property.

Plum Island Flood Insurance Coverage

Under most circumstances, an existing policy is transferable and, if a primary residence, will be subject to limited increases. It is very possible that the premium would be under $500 per year, at least for the time being. That offers coverage for up to $250,000 on the structure only. There is no insurance available for additional coverage on the structure. The transferable policy may remain in effect if the flood plain is changed to a higher risk zone, and the premium could remain the same. If the property is not a primary residence, insurance rates can be much higher.

Advice for Plum Island Home Buyers and Sellers

Again, it is essential that a potential buyer contact a qualified insurance agent for details on Plum Island flood insurance for a specific property. If you are a Seller, you should do the same so that you know exactly what a Buyer may be dealing with. You and your agent and can then provide basic information to prospective buyers. Do not wait until after a deal is negotiated to understand your flood insurance exposure! At Wellsco we are always happy to assist.

About Editor-John P. Wells

I am a resident of Newburyport and have worked in education, high tech and urban development. My interests in architecture and construction are invaluable to my clients. For more information please visit the Wellsco website.