The REAL rules will not in any way affect FEMA flood mapping or require people to obtain flood insurance. Federal flood insurance rates are set by FEMA’s Flood Insurance Rate Maps. Only FEMA can amend or alter these maps.
The State does not require development to have flood insurance. Individuals are generally required to obtain flood insurance only if:

  1. A building is located within a FEMA-mapped 100-year floodplain, (which is unchanged by the REAL rules);
  2. There is a mortgage on the building; and
  3. The lender requires flood insurance to protect their investment.

While the REAL rules do not alter the need for or cost of flood insurance, the rule does create a larger floodplain within which development is required to obtain a NJDEP permit and conform to the proposed new construction standards.