Scituate Coastal Coalition

AN IMPORTANT MESSAGE TO SCITUATE COASTAL RESIDENTS REGARDING FLOOD INSURANCE COVERAGE

When the current Flood Insurance Rate Map (FIRM) for Scituate was issued in October, 2003, many properties in Scituate were put into a flood zone considered to be a greater flood risk than the zone designation on the previous FIRM.  As an example, many properties were put into the highest risk category referred to as VE or velocity zone. 

In terms of flood insurance, the placement of a property in a higher risk zone brings with it an increase in flood insurance premium. If the dwelling meets the elevation requirements of the current FIRM the premium should be nowhere near as high as for a dwelling that is not elevated. 

The good news is, if the property was re-zoned to a higher risk category as a result of the 2003 FIRM, the property owner is “grandfathered” in terms of premium, meaning that as long as the flood insurance policy is not allowed to lapse, the premium charged will be based on the lesser risk category and not the greater risk category. 

This “grandfathering” applies only to the insurance premium.  As far as future structural changes to the dwelling or land use changes are concerned, the post-2003 FIRM reflects the appropriate zone.  If the property is transferred in any manner to a new owner,  the flood insurance should be dealt with so as to avoid a lapse in the policy.

It has become clear that not every insurance agent is sufficiently knowledgeable when it comes to flood insurance, particularly as it relates to coastal property.  This seems to be more likely to be the case when property owners who own second homes in Scituate purchase insurance from agents in their inland communities.  It would behoove each coastal property owner to keep a close eye on his/her flood insurance policy and become very aware of its language.