FEMA Updates 400 on Flood Map Changes, Insurance

CAPE MAY – Representatives from the Federal Emergency Management Agency (FEMA), the National Flood Insurance Program, and the State Historic Preservation Office met with Cape May County property owners on June 15 to discuss upcoming changes to the FEMA flood maps, increases in flood insurance premiums, and reconstruction impacts on historical structures.
Approximately 400 people attended the special meeting of City Council, including municipal floodplain managers from Cape May, Cape May Point, Lower Township, Middle Township, Avalon, and Sea Isle City. Twenty-two FEMA and NJDEP representatives were available during and after the conference to assist the public with their individual property concerns.
For the past five years, FEMA Region 2 has been in the process of remapping coastal hazards along the New Jersey and New York coastlines. Following Hurricane Sandy, property owners looking to identify their flood risks could refer to Advisory Base Flood Elevations (ABFE). That will all change at the end of July when the county’s Preliminary Work Maps will be released.
Factors used to determine the layout of the Preliminary Work Maps include overland wave modeling and erosion. “We now have taken into consideration with our modeling and data analysis regarding the velocity of water,” said Patrick Holloway, a FEMA risk map outreach specialist. “That affects what’s determining V Zones versus A Zones.”
Advisory Zone V (velocity) is made up of areas subject to high velocity wave action from the 1 percent annual chance coastal flood, while Advisory Zone A is comprised of areas subject to storm surge flooding from the 1 percent annual chance coastal flood. Both Advisory Zones are considered high risk flooding areas and include land along the coast and the back bays.
Hudson, Monmouth, Atlantic, and Ocean – received preliminary work maps on June 17.
“From the ABFE standpoint to the preliminary work maps that are now coming out for those counties, we are seeing zones decreasing, mainly those that are on the bay side, going from Vs back to As,” Holloway said. “We have also seen some increases in some of those areas in their elevations.”
Another concern for property owners deals with their flood policies. Many homeowners in Cape May County will begin to see their insurance premiums go up 20 to 25 percent. Older homes will not be immune to increases either. The Biggert-Waters Flood Insurance Reform Act, passed by Congress last year, removes subsidies once associated with these “grandfathered” properties.
Non-primary residents, who make up 55 percent of Cape May property owners, will be the first to notice changes. The Biggert-Waters Flood Insurance Reform Act will affect primary residents if they sell their property, transfer the deed to another person, let their flood insurance lapse, or if their property becomes substantially damaged (the cost of repairing the building equals or exceeds 50 percent of the building’s market value, excluding land).
“If any of those things happen, that could cause your premium to increase at a rate of twenty percent for renewal until it gets to what is considered the actuarial rate, or the unsubsidized rate of what flood insurance should actually cost,” said National Flood Insurance Program Specialist Dewana Doris.
“For vacation homes and commercial property, as of October of this year, once your policy renews you will begin to see an increase in premiums,” said Doris. “We are only talking about the people who live in A Zones and V Zones. If you are a preferred policy holder living in the B, X, or C Zones, these will not affect you.”
The same insurance premiums will apply to historic properties in Cape May; however, there is no requirement to elevate should the structure be substantially damaged. Michael Audin, a representative with FEMA’s Environmental and Historic Preservation Office, explained that the Hazard Mitigation Office would provide the funding for things like elevating homes, but that their office would help property owners navigate the process to secure any available funding.
John Murray, of West Cape May, wondered how the insurance companies could make changes to the premiums without first referencing the new flood maps.
“I just got a notice from my flood insurance carrier because the renewal is up on June 26 and the rate has gone up by $1,000,” Murray said. “How is the insurance company able to do this now?”
Doris offered to look at Murray’s policy, but explained to him that the increases on his bill might have more to do with annual increases, than with the Biggert-Waters Flood Insurance Reform Act.
For some the premium hike may prove too steep, prompting those homeowners to go without coverage. City Solicitor Tony Monzo reiterated that no one is required to purchase flood insurance, unless required to do so by their mortgage lender.
Once the Preliminary Work Maps become available, the Preliminary Flood Insurance Rate Maps will be presented, followed by a 90-day appeals process. For the City of Cape May, and other coastal towns in Cape May County, that will most certainly mean changes at the local level.
“What we’re looking at as a coastal coalition of shore towns is knowing that we’re going to have to make changes in the zoning ordinances as we go forward, but we would like to have more definitive data before we start to do that because the more important aspect is looking at how we’re going to be sustainable coastal towns through the next century,” said Cape May Mayor Edward J. Mahaney.
“It goes beyond just the actual buildings themselves. It goes to what type of protective services we’re going to provide and how we’re going to handle our infrastructure. As a result it’s going to cause all the towns to once again keep modifying their master plans and uniting their long-term capital and financial plans to make certain they have the resources to do priority projects,” he added.
Mahaney praised past improvements projects, such as the seawall and three pumping stations, for protecting the city from catastrophic flooding caused by storms like Hurricane Sandy.
Mahaney continued to say that the City of Cape May would take the 90 days to review the Preliminary Work Maps, make any necessary appeals, and then begin the process of updating the ordinances.
“As we move forward and people want to build on the few remaining lots we have and redevelop the properties, we’re advising them to not undertake any major projects unless they have to,” said Mahaney. “Wait until we see what the elevations are, what the zones are, and then we’ll work with you.”
At the conclusion of the conference, Holloway reminded property owners that FEMA, along with state and local officials, would be available to address any concerns. “We are here for your long-term recovery needs and we will continue to be here,” he said.
The National Flood Insurance Program continues to operate a call center to assist property owners with flood insurance related questions, including help with the claims and appeals process. Property owners can also call the center with their elevations certificates and receive sample insurance rates. The New Jersey Flood insurance Helpline contact number is (877) 287-9804.
For more information on Coastal Analysis and Mapping for Cape May County, including Preliminary Work Maps, visit www.region2coastal.com.