Peterborough residents could see a 10% increase to flood insurance premiums after a funding cut to a federal contractor.
The change comes as the town prepares for updated flood maps expected to take effect in June, which could shift some properties into higher-risk flood zones and trigger new insurance requirements from mortgage lenders.
Director of Planning & Building Danica Miller said the town participates in FEMA’s National Flood Insurance Program Community Rating System where Peterborough receives points for certain floodplain management activities. In return, residents and businesses receive a 10% insurance discount on their premiums.
The rating comes from an annual report reviewing the town’s progress toward floodplain and hazard mitigation goals set forth in its hazard mitigation plan.
While funding was discontinued March 4, the town wasn’t notified until March 20.
Miller said an email she received from a representative of Verisk, a third-party flood policy enforcement entity FEMA uses, stated the CRS program can no longer process upgrades and new community enrollments, complete pending cycle verifications, provide technical assistance to communities or conduct training.
“We had a five-year verification cycle started in June 2025 that was focused on getting Peterborough a better insurance discount,” she said. “It was still on-going before this email was sent.”
Following the announcement, Miller said the verification appears delayed indefinitely.
Miller asked FEMA representatives to clarify if CRS was discontinuing permanently and what impact it would have on insurance premiums.
Miller said until FEMA responds, she can only assume people will lose their 10% insurance discount.
John Grace, a senior floodplain management specialist from FEMA, said staff were being redirected to support emergency activities only, and that once the lapse in funding appropriations for CRS was resolved he would contact the town.
According to Miller, the flood maps were last updated in 2009 and have three floodplain classifications — 500-year flood zones, 100-year flood zones and flood ways.
She said flood ways are paths water is expected to take during a flood, while 100-year flood zones expect to see flooding once in a generation.
“These flood zones have building restrictions, such as elevating utilities one foot off the ground,” she said.
Structures in 500-year flood zones don’t have any of those restrictions, she added.
Due to mapping technological improvements, FEMA’s recent Contoocook watershed assessment changed many properties’ classifications from 500-year zones to 100 years.
Miller said unless property owners whose lots were reclassified into 100-year flood zones make substantial renovations, which is 50% or more of the property’s assessed value, they do not have to make changes to their homes to meet the new flood requirements.
However, she anticipates mortgage holders will require those property owners to purchase flood insurance.
“FEMA originally planned to have an open house in town on April 30 to talk about the new flood maps,” Miller said. “However, after the announcement, I’m not sure if anyone is coming to speak on it.”
She said she is going to speak with the Select Board about the changes and recommend the town write a letter to Congress.