$33K flood insurance bill could sink Union Beach couple, they say

UNION BEACH — A Union Beach couple who received a flood insurance bill last spring for more than $33,000 even though they raised their property above new federal flood standards after Hurricane Sandy now worry they will be forced to abandon their home because of ballooning costs.

Richard and Sandra Drake were notified last week that their mortgage payment would rise by nearly 50 percent in January to pay for insurance coverage secured by their lender as they continue to dispute the 55-fold increase in their premium. The roughly $2,200 mortgage payment will pile on top of the $450 the Drakes owe each month toward a federal loan they took out after the storm to help them rebuild.

“I just won’t be able to do it,” said Richard Drake. “I won’t be able to afford it.”

Drake said he did everything he was told by officials when rebuilding after Sandy. Further, he said, the home was elevated three feet above minimum federal requirements listed in new flood maps released after the storm.

Before Sandy, the couple's flood insurance premium was $598 a year.

The renewal notice for their policy came in April. It had two options: one for $33,122, the other for $33,264.

The couple initially thought the bill was a mistake. But seven months later, they’re still saddled with the hefty premium.

That’s because of a discrepancy between the flood zone where the Drakes’ house now sits in federal maps and where it will sit when new maps are officially adopted.

Though the couple’s property is drawn into a less restrictive flood zone in new maps released after Sandy, their house now partially sits in an area subject to storm-driven waves, known as the “V” zone, according to federal officials. The town’s construction official, however, has disputed that designation, saying the property has always been in the less-restrictive zone.

The Drakes raised their home on Lorillard Avenue three feet above new federal flood regulations.

The Drakes elevated their home on a solid foundation when they rebuilt after Sandy. Homeowners in the more restrictive zone are required to build on pilings.

For months, the Drakes have been working with local, state and federal officials to try and find a resolution. But an October 15 letter from the Federal Emergency Management Agency — which manages the National Flood Insurance Program — dashed their hopes.

The letter said that in the current maps, the Drakes’ home sits in both zones. “Under these circumstances, your flood insurance policy must be rated using the higher of the two relevant risk zones,” the letter said.

The letter acknowledges that the couple’s home appears to sit in the less-restrictive zone in the new map but said flood insurance policies cannot be based on that map because it has not yet been formally adopted. That’s not expected to happen until the end of next year.

The Drakes’ mortgage company, meanwhile, took out flood insurance coverage on the Lorillard Avenue property.

A Chase spokesman said in a statement that the company is “required under federal law to ensure continuous, adequate insurance coverage” on homes in flood hazard areas. Therefore, the statement said, the company “added minimum gap coverage on the unpaid principal balance of this property.”

The Drakes received an updated escrow analysis last week from Chase that said the couple’s mortgage payment would be adjusted from $1,500 a month to $2,200 a month beginning on Jan. 1 to cover that expense.

Drake said he doesn’t have the resources to deal with the additional financial burden. He doesn’t want to lose the home he just rebuilt but, he said, there may not be another option.

“It’s a shame that after all this time we really are probably going to have to walk away from this,” he said.

Erin O'Neill may be reached at eoneill@njadvancemedia.com. Follow her on Twitter @LedgerErin. Find NJ.com on Facebook.

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