As many of us continue to cope with the aftermath of Hurricane Sandy, this NY Times article (http://www.nytimes.com/2012/11/29/nyregion/cost-of-coastal-living-to-climb-under-new-flood-rules.html?pagewanted=1&_r=1&ref=todayspaper&) examines the costs that could force many from coastal life. It was estimated the fewer than 30% of NY homes affected had flood insurance. FEMA states that homeowners in storm-damaged coastal areas who had flood insurance — and many more who did not, but will now be required to — will face premium increases of as much as 20% to 25% per year beginning in January, under legislation enacted in July to shore up the debt-riddenNational Flood Insurance Program. This means that premiums will double for new policyholders and for many old ones within three or four years under the new law.

Avoiding the expense of flood insurance will become harder because the lenders who do enforce the insurance requirement will face higher penalties. It will take FEMA months to years to finalize the new flood maps which will reflect the damage from Sandy. It may take some time, but it should be a sound assumption that flood insurance and new building standards will be much more expensive and stringent.

Also please note:

• NJ and NY declared Federal disaster areas will have until Feb 1^st, 2013 to make any estimated payments.
• While property taxes will likely increase in response to the rebuilding effort, NJ State law contains a provision which states that a property with a building or other structure that has been destroyed by a storm between Oct 1^st and Dec 31^st can have the assessment reduced to reflect the depreciation in value for that property. The landowner must provide the assessor with notice prior to Jan 10^th, 2013. The assessor will value the property as of 1/1/2013 but will take into account any improvements made as of 1/1/2013. If you experience damage, we strongly suggest you call your town to have a re-assessment.