Friday, May 24, 2013

Flood Insurance premiums in Cape May, New Jersey

Poverty BeachA lot of uncertainty surround ds the issue of new flood insurance premiums in Cape May for existing homeowners as well as home purchasers.  From what we have been told, flood insurance premiums in Cape May will be rising but the extent of the increase is a matter of debate.  I have spoken with several agents from Marsh and LcLenahan, Cape May's largest insurance agency, and they are telling me that what they are seeing is flood insurance premiums in Cape May increasing by an average of 25% for each of the next 4 years for second home/investment properties and 15-20% for primary homeowners.  We are also being told that US Congressman Frank LoBiondo has proposed legislation that would limit the increase in floor insurance premiums in Cape May, in particular, but for policy holders in general to about 12% for the next 8 years.  I also understand that flood maps are being proposed that re-categorizes flood zones in Cape May, but that they will probably go through 2 or 3 iterations before being finalized.

In addition, mayors, councilmembers and members of the general public are pressuring FEMA (Federal Emergancy Management, the body charged with updating the maps) to take a closer look all areas covered by the maps.  When you think about it, Cape May is not a barrier island like Wildwood, Stone Harbor, Avalon and LBI - where the ocean and back bays are separated by less than 5 blocks in some areas.  Cape May is really a peninsula, with the l940-50's creation of the Cape May canal giving the town a feel of an island.  Additionally, the ground elevations in the barrier towns is no more than 5 feet above sea level, in many cases, while the ground elevations in Cape May generally run from 7 to 14 feet above sea level.  One would think that this difference would afford better flood insurance premiums in Cape May - so we wait and see.

By the way, it isn't really the flood insurance premiums in Cape May that are being raised, it is the removal of the Federal subsidizations that all floor insurance policy holders have been the beneficiary of.

While I am not going to pretend that the above info is dead on, it is the latest that we have been able to draw from the people who are supposed to know.



William Bezaire
Coldwell Banker Sol Needles Real Estate
609-884-8428 work
609-884-3006 home
609-827-3513 cell
 



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