{"id":1280,"date":"2018-04-13T14:02:03","date_gmt":"2018-04-13T14:02:03","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=1280"},"modified":"2018-04-13T14:02:38","modified_gmt":"2018-04-13T14:02:38","slug":"the-latest-developments-in-florida-flood-insurance-rates","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/the-latest-developments-in-florida-flood-insurance-rates\/","title":{"rendered":"The Latest Developments in Florida Flood Insurance Rates"},"content":{"rendered":"
\"Florida

If you live in a high-risk flood area and have a mortgage, in most cases your mortgage lender will require that you carry a flood insurance policy. However, many homeowners who live in medium or low risk areas don\u2019t carry flood insurance and that can be a big mistake.<\/p><\/div>\n

As the spring storm and hurricane season approaches we thought it might be a good idea to take a look at the latest developments in Florida flood insurance. We will have a quick look at the National Flood Insurance program to see where rates are headed and what options are available to you when it comes to protecting your home from flood damage.<\/p>\n

Flood Insurance is Always a Good Idea<\/strong><\/p>\n

If you live in a flood prone area, flood insurance is a must. It is important to remember that flood damage is never covered by a standard homeowners policy so if your home is damaged by floodwaters and you are not carrying a separate flood policy, the bills to repair or rebuild your home will fall to you.<\/p>\n

According to data from the Federal Emergency Management Agency (FEMA<\/a>), flood damage is the nations most costly and common natural disaster and in many cases homeowners don\u2019t understand the need for flood insurance. A 2016 survey done by the Insurance Information Institute found that 43 percent of homeowners believe that flood damage caused by heavy rain is covered by a standard homeowners policy<\/a>, that belief is incorrect.<\/p>\n

If you live in a high-risk flood area and have a mortgage, in most cases your mortgage lender will require that you carry a flood insurance policy. However, many homeowners who live in medium or low risk areas don\u2019t carry flood insurance and that can be a big mistake.<\/p>\n

Flooding can happen anywhere, according to FEMA data, 20 percent of flood claims originate from properties that are not located in a high-risk flood zone. If you are even remotely at risk for flood damage, you should have a flood insurance policy in place.<\/p>\n

Now is the time to find a flood insurance policy<\/a> as spring and summer storms are on the way and a flood insurance policy doesn\u2019t take effect until 30 days after your sign on the dotted line. In addition, prices may be headed up depending on how Congress decides to deal with the National Flood Insurance Program<\/a>.<\/p>\n

Flood Insurance is Being Tweaked<\/strong><\/p>\n

Due to the inaction by Congress, FEMA is making a few tweaks to the National Flood Insurance Program, which may make it easier to get a policy from a private insurer and inject some much need private money into the government program.<\/p>\n

The NFIP is currently almost $30 billion in debt and Congress continues to kick the can down the road when it comes to reforming the program. FEMA has decided to act on its own, loosening rules about private insurers offering their own policies and also taking on roughly $1.5 billion in reinsurance, which will help limit its losses if the 2018 storm season turns nasty.<\/p>\n

In addition to the reinsurance, FEMA is trashing its non-compete rule that barred insurance companies from selling NFIP endorsed policies through the NFIP program \u201cWrite Your Own.\u201d This will hopefully entice more private insurers to offer flood insurance products in the Florida market as well as other states.<\/p>\n

FEMA hopes that allowing private competition will help reduce the number of homeowners that go without flood insurance. While FEMA has gone ahead and made these changes, a long term solution still seems out of reach as Congress refuses to confront the issue a decision that will most likely lead to higher premiums for most homeowners looking to purchase flood insurance.<\/p>\n

Premiums on the Rise in Florida<\/strong><\/p>\n

Flood insurance premiums are set to rise this month according to an article in the Tampa Bay Times. Prices could be headed up anywhere from 5 percent up to a whopping 25 percent.<\/p>\n

In April, rates for flood insurance climbed from an average of $866 to $935, which is an increase of 8 percent although many homeowners will only see an increase of 5 percent.<\/p>\n

While homeowners can expect an average rate hike of 8 percent, prices could be headed up dramatically after July 31st<\/sup> if Congress doesn\u2019t make changes to the NFIP program. This is the deadline for action that Congress set the last time they kicked the issue down the road.<\/p>\n

Congress has until the July 31st<\/sup> deadline to renew the NFIP and make changes that will help the program climb out of debt. Experts see three possible outcomes by the July 31st<\/sup> deadline:<\/p>\n