Insurance rate hikes vex Lynn property owners

LYNN – Local property owners dumped into newly drawn flood zones this year are facing 25 percent or higher insurance rate increases even as elected officials take their fight against the maps to the federal government.?There are people who have never been flooded who have to pay for insurance when they barely can pay their mortgage,” said Ward 6 City Councilor Peter Capano.Homes in West Lynn neighborhoods Capano represents are among 1,211 in the city included in flood zones outlined on Federal Emergency Management Agency maps approved by the council in July.Councilors faced a mid-July federal deadline to approve the maps or see property owners lose insurance, city Inspectional Services Director Michael Donovan told councilors. The federal government draws the maps, but Ivy Frances, a FEMA chief flood planner, pointed out that banks require flood insurance for properties with mortgages.Columbia Insurance Agency President John Olson said insurance companies are insisting on similar requirements for property owners added to the new flood maps. When one West Lynn customer pointed out his relatively small mortgage to his insurer, the company told him he must insure his property to its replacement value.?They said they didn?t care,” Olson said.Ward 3 Councilor Darren Cyr said residents living on low-lying East Lynn streets near the Swampscott line, including Erie and Michigan, may hire professional help to prove they are not in a flood zone and do not need insurance because they have not been flooded in years.?Some people are considering hiring a surveyor. This affects around 100 homes,” Cyr said.Olson said property owners who are among the 800 added onto Lynn flood maps should shop for “preferred risk” flood insurance in hopes of receiving a rate discount that extends four, even five, years.?The question is, once you?re grandfathered out, what will the rate be?” he asked.Capano said Congress is questioning federal flood insurance regulations and requirements.?They are challenging the way they draw the maps,” he said.Like Capano, Cyr said flood insurance rate increases represent potential serious expenses for some of his constituents.?For them, $500 or more on insurance is a big nut,” he said.Flood insurance represents a small share of Columbia?s and DiVirgilio Insurance?s business, but Matthew DiVirgilio said he is receiving calls from customers who are receiving 25 percent rate hikes from insurance companies.?People are agitated, irritated and concerned,” he said.