R ight now in the Skagit River Valley area there is lots of buzz about the new, proposed FEMA flood zone maps. If adopted by FEMA, these new maps will change the flood insurance designation for many Skagit County properties from “B” properties (relatively low risk of flood damage) to “A” properties (higher risk of flood damage). FEMA is currently in a public comment period and there may be appeals by some of the local municipalities. What does this all mean to the average Skagit Valley homeowner?
Property owners currently in “B” areas who do not already have flood insurance (most don’t as it is not currently required by lenders) have an opportunity to be “grandfathered in” at existing “B” insurance rates should they be re-designated as “A” properties when the maps are adopted. The savings could be tremendous. Current flood policies are averaging under $400/year and new “A” zone policies for properties that do not have grandfathered policies could be over $2000/year. Once the maps are adopted, mortgage companies will require property owners who have a mortgage to purchase flood insurance if they are rezoned into the “A” areas. Time is of the essence, as the maps will likely take effect within one year.
Not adding a flood policy now could severely impact the resale value of a property in the future. The annual premium at the “A” rate could be a sales barrier to many buyers.
We encourage all property owners in the Skagit Valley to check immediately with their insurer to determine the current flood designation of their property. Those that are slated for re-designation should consider purchasing a flood policy now to avoid unwieldy insurance costs later.
