Recently a number of our clients have received letters from their mortgagees informing them that their homes have been reclassified as being in high risk flood zones. That's the bad news.
The good news is that in order to reduce sticker shock the National Flood Insurance Program (NFIP) allows homes in newly designated zones to be rated in the Preferred Risk Program (PRP). The PRP is typically for those home and building owners who are not located in the high risk zones but want flood insurance anyway. As such, the rates are much cheaper. As an example we recently wrote two re-zoned homes in Nahant with $250,000 in building limits for $537 each. In the regular flood program the price would be closer to $2,500.
If you or someone you know has received a rezoning letter and has received a quote or a policy with the much higher premium they should contact their agent and ask about the PRP. Policies that have been issued in the regular program can be converted to the PRP in many cases.