Changes to the FEMA flood map is causing confusion for homeowners and mortgage companies in Vermont. As the flood maps are rezoned due flooding caused by Irene, some homeowners are finding themselves inside the new “flood zone” even though they were not affected by the recent flood waters. This has been aggravating to some homeowners who are now being forced to purchase flood insurance by their mortgage company.
Vermont Homeowners Insurance like every other state specifically excluded flood coverage. Flood insurance is covered with a separate mono-line flood policy. Few private insurance companies are willing to delve into the flood market due to the loss scenario. A good analogy is “when it rains it pours” having the potential for many, many claims filed all at once in not very appealing to most VT insurers. Purchasing a private flood insurance policy can have its advantages over FEMA’s policy. At Downey Insurance we do have access to this slim Vermont flood insurance market.
If you have been notified by your mortgage company that you need to purchase flood insurance, we can help you. Let us take care of the leg work for you.