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How a Government shutdown could disrupt flood insurance on Cape Cod

Posted by REEF Cape Cod's Home Builder on Tue, Sep 30, 2025

A government shutdown could have serious consequences for Cape Cod residents, especially when it comes to flood insurance. The National Flood Insurance Program (NFIP), which provides most of the flood insurance policies on the Cape, is at risk of lapsing if Congress fails to pass a spending bill. This could leave many homeowners and home buyers in a difficult position.

waterfront

A lapse in the NFIP would mean that no new flood insurance policies could be written and no existing policies could be renewed. This would have an immediate and significant impact on the Cape's real estate market. Many home sales would likely be delayed or even canceled, as flood insurance is required for mortgages in high-risk areas.

The economic impact of a shutdown could also be significant. The National Association of Realtors estimates that a lapse in the NFIP could disrupt thousands of home sales across the country every day. On the Cape, where the real estate market is a major economic driver, the impact could be particularly severe.

In addition to the immediate impacts on the real estate market, a lapse in the NFIP would also create uncertainty for homeowners. With hurricane season upon us, the last thing that Cape Cod residents need is to be worried about whether their flood insurance policy will be valid.

DJI_0091

Here are some of the key impacts that a government shutdown could have on the NFIP and Cape Cod:

  • No new flood insurance policies will be issued, and existing policies will not be eligible for renewal.

  • Real estate transactions in flood plains will be frozen.

  • The NFIP's ability to borrow from the U.S. Treasury will be significantly limited, which could impact its ability to pay claims in the event of a major disaster.

Cape Cod is a beautiful place to live, but it is also a place that is vulnerable to flooding. That is why it is so important to have a strong and stable National Flood Insurance Program. A government shutdown would put that program at risk, and it would put Cape Cod residents at risk as well.

FLOOD RESISTANT HOMES

Many inquiries we receive for new construction or renovations on Cape Cod are for properties within FEMA flood zones. Homeowners must be aware that building in these designated A, AE, AO, or V zones is subject to strict design and construction regulations that can significantly alter the original concept for their home.

If you want to know if your home is in a FEMA Flood Zone - Click Here to enter your address and find out!

With the constant uncertainty surrounding federal programs, we believe the most sensible and permanent precaution is to design and build a resilient, flood-resistant home. REEF Builders has vast experience in this specialized area, creating custom homes on Cape Cod that are engineered to meet and exceed coastal building standards, providing peace of mind no matter the situation in Washington.

FEMA Substatial Improvement

Download your FREE Guide to Permitting and Building your Custom Home  on Waterfront and Coastal  Property on Cape Cod here


Source: National Flood Insurance Program is set to expire Tuesday, halting new policies and some home loans - Newsday

Tags: Construction Costs, Cape Cod Real Estate, FEMA flood maps, FEMA flood zones, Home Design, House Design, Cape Cod Design Build, Hurricane, How to build a custom home on Cape Cod, flood insurance

Building in a Flood Zone on Cape Cod

Posted by REEF Cape Cod's Home Builder on Sun, Dec 10, 2023

Every week we get phone calls about building a new home or renovating existing homes here on Cape Cod. More often than not, we discover that many of these project sites are located within documented FEMA Flood zones. Why is this important?

097-161006-COIR Photo_03

Any construction within a FEMA A, AE, AO or V flood zones require special design and construction considerations that can either limit or dramatically change a homeowners' concept what their new home or renovated home may look like.

If you want to know if your home is in a FEMA Flood Zone - Click Here to enter your address and find out!

Here's a great diagram from FEMA that explains the impacts of different flood zone designations on home construction:

 

FEMA Flood Zone Diagram

Any properties located within these zones (with the exception of the "X" zone) must be designed and built to flood resistant construction standards which generally means that any new home or addition in these areas must be raised up above the flood plain, and foundation areas must be designed to allow flood waters to pass through the foundation without damage.

Renovations and additions are especially tricky as the size (monetary value) of the project may require the entire existing structure to be raised up above the flood plain before the renovation or addition work can begin. The requirement to raise the home up is determined by the "Substantial Improvement" regulation defined below:

Any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the "start of construction" of the improvement. This term includes structures which have incurred "substantial damage," regardless of the actual repair work performed. The term does not, however, include either:

  1. Any project for improvement of a structure to correct existing violations of state or local health, sanitary, or safety code specifications which have been identified by the local code enforcement official and which are the minimum necessary to assure safe living conditions or
  2. Any alterations of a "historic structure," provided that the alteration will not preclude the structure's continued designation as a "historic structure."

Floodplain management requirements for new construction apply to substantial improvements. Increased Cost of Compliance (ICC) coverage does not apply to substantial improvements unless a structure is substantially damaged due to flooding.

Here's a good example of a home after a substantial improvement in a flood zone:

 

FEMA Substatial Improvement

 

If you are considering building a new home or considering a major renovation or addition to your Cape Cod home, and you think that you may be in a FEMA flood zone, please contact us today to see how we can help!
 
 
There are many ways to design and build your new Cape Cod Home and still have it look great!  - here's an example!
Before:
PART_1515092862783_image000000
 
 
After:
DSC09768_69_70_71_72
If you are currently own a property in a Flood zone and you are interested in rebuilding your home, click here for current cost per square foot price ranges for a new custom home on Cape Cod:  Cape Cod Construction Costs
 
Looking for land for your Cape Cod Dream Home?  Search  the Cape and Islands MLS Here

 

Tags: FEMA flood maps, flood zones

Building in a Flood Zone on Cape Cod

Posted by REEF Cape Cod's Home Builder on Tue, Feb 01, 2022

Every week we get phone calls about building a new home or renovating existing homes here on Cape Cod. More often than not, we discover that many of these project sites are located within documented FEMA Flood zones. Why is this important?

Any construction within a FEMA A, AE, AO or V flood zones require special design and construction considerations that can either limit or dramatically change a homeowners' concept what their new home or renovated home may look like.

If you want to know if your home is in a FEMA Flood Zone - Click Here to enter your address and find out!

Here's a great diagram from FEMA that explains the impacts of different flood zone designations on home construction:

 

FEMA Flood Zone Diagram

Any properties located within these zones (with the exception of the "X" zone) must be designed and built to flood resistant construction standards which generally means that any new home or addition in these areas must be raised up above the flood plain, and foundation areas must be designed to allow flood waters to pass through the foundation without damage.

Renovations and additions are especially tricky as the size (monetary value) of the project may require the entire existing structure to be raised up above the flood plain before the renovation or addition work can begin. The requirement to raise the home up is determined by the "Substantial Improvement" regulation defined below:

Any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the "start of construction" of the improvement. This term includes structures which have incurred "substantial damage," regardless of the actual repair work performed. The term does not, however, include either:

  1. Any project for improvement of a structure to correct existing violations of state or local health, sanitary, or safety code specifications which have been identified by the local code enforcement official and which are the minimum necessary to assure safe living conditions or
  2. Any alterations of a "historic structure," provided that the alteration will not preclude the structure's continued designation as a "historic structure."

Floodplain management requirements for new construction apply to substantial improvements. Increased Cost of Compliance (ICC) coverage does not apply to substantial improvements unless a structure is substantially damaged due to flooding.

Here's a good example of a home after a substantial improvement in a flood zone:

 

FEMA Substatial Improvement

 

If you are considering building a new home or considering a major renovation or addition to your Cape Cod home, and you think that you may be in a FEMA flood zone, please contact us today to see how we can help!
 
 
There are many ways to design and build your new Cape Cod Home and still have it look great!  - here's an example!
Before:
PART_1515092862783_image000000
 
 
After:
DSC09768_69_70_71_72
If you are currently own a property in a Flood zone and you are interested in rebuilding your home, click here for current cost per square foot price ranges for a new custom home on Cape Cod:  Cape Cod Construction Costs
 
Looking for land for your Cape Cod Dream Home?  Search  the Cape and Islands MLS Here

 

Tags: FEMA flood maps, flood zones

How will the new FEMA Flood Maps affect your Cape Cod property?

Posted by REEF Cape Cod's Home Builder on Mon, Sep 16, 2013
  • Will the new FEMA flood zones affect your Cape Cod property?

  • Is there anything you can do to reduce the impact to your home?

  • How will the new Flood Zones affect your insurance rate?

  • Can you appeal FEMA’s delineation of the Flood Zone around your property?

The new FEMA Flood Zone Maps have catalyzed myriad questions from thousands of property owners. If you are interested in buying or building on Cape Cod, this is really important information.

Property that is located in a 500 year flood plain may now be in a newly designated 100 year plain, or even a “velocity zone.” This affects not only insurability of the property, and the corresponding rates, but also what is allowed to be built on the property, and what construction techniques must be employed when a structure is built or renovated.

This is a huge deal for anybody with property on or near the water. There’s lots of confusion, many questions, and plenty of disinformation. Here’s a simple Infographic from FEMA and some explanation from Coastal Engineering Company which will help home owners and Buyers alike.

Don’t let the new FEMA maps take you by surprise! Do your research now, and be prepared for the adoption of the new maps in 2014.

New FEMA Flood Insurance Rate Map infographic

FEMA logo resized 600

Cape Cod Flood ZonesNew FEMA Flood Insurance Rate Map infographic

Tags: Cape Cod Builder|Cape Cod Custom Homes|beach house, FEMA flood maps

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