The entire flood-insurance controversy is one of those issues that kind of sail over people’s heads if they don’t own property near the ocean or rivers etc.
But now the new Federal Reserve Beige Book is taking up the issue, mentioning at the very end of its most recent Boston report that surveyed respondents (and we assume they’re real-estate industry people) say new government rules could drive up the cost of flood-insurance policies.
“They say that lack of affordable flood insurance may cause values to fall and buyer delays in newly redrawn flood zones,” the report states.
While it doesn’t specifically mention the Cape or other specific coastlines in New England, most of the concerns about the new insurance rules and costs in Massachusetts have indeed focused on Cape Cod homeowners.
Suddenly, a seemingly policy-wonkish issue becomes more real.
Photo is courtesy of WikiMedia Common.