The massive marketplace is now showing quotes that are notably lower than NFIP.
In recent news that is quite different from what Florida is used to hearing, it could be that flood insurance rates are actually falling and becoming more affordable, as private insurers start to make their way into this marketplace.
Consumers who have been shocked by the increases by NFIP are finding relief in new quotes.
The National Flood insurance Program (NFIP), which is a part of FEMA, is now quoting rates that are significantly higher than what is available elsewhere for many Florida consumers. For example, for a home in the St. Petersburg Shores Acres section, coverage for $250,000 was quoted by NFIP to be $4,846 per year. However, the rate that was quoted for that same property by Lloyd’s of London was a notably more affordable $2,123.
Private flood insurance companies are now starting to scoop up consumers who can’t believe the NFIP rates.
The decreases that are being seen in the quotes for flood policy premiums aren’t anything to shrug off. For instance, the rate from Lloyd’s for $146,000 worth of coverage in St. Petersburg was $1,367, whereas NFIP had quoted a renewal rate of $6,685. Similarly, Lloyd’s quoted $1,489 for $188,000 of coverage for a St. Pete Beach house, whereas the NFIP quote was a staggering $9,004. A Tampa home needing $250,000 worth of coverage was quoted $2,192 by Lloyds and $6,342 by the flood program.
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As private insurers start to make their way into the Florida market, thousands of homeowners who had previously been facing serious financial challenges could now be seeing much bluer skies. Floridians who thought that their coverage would be prohibitively expensive because their homes had been constructed many years ago in low lying areas are suddenly seeing much more affordable rates. Those who were terrified that their property values would plummet due to the cost of insuring it are now seeing that this may no longer be the case.
Flood insurance has been available in Florida from Lloyd’s of London since last summer. The massive institution is now improving things even further by instructing its insurance agents to “significantly” decrease its rates now that it has broadened its reach into other states, decreasing its risk from any single catastrophic storm.