Homeowners and businesses will see an increase in their coverage costs
Flood insurance rates are expected to rise soon, with homeowners in risk-prone areas being hit the hardest by the increase. While flood protection costs have been mitigated for a time, higher rates were inevitable in order to ensure that the National Flood Insurance Program from its financial problems. Per the provisions of the Flood Insurance Affordability Act, which had initially halted the rise in insurance premiums, new surcharges will be issued on properties with flood protection.
Primary residences will see a surcharge of $25 a year on their coverage
For primary residences, the surcharge will be $25 a year, which will be added to a homeowner’s flood insurance policy. For those living in risk-prone areas, such as coastal regions, premiums are expected to grow in order to compensate for the risk that these properties represent. In some cases, homeowners will see an increase of 25% in the cost of their flood insurance coverage. For many, however, this may not be the case.
_________________________Random Success Quotes to Remember ~ “Successful people do what unsuccessful people are not willing to do. Don't wish it were easier; wish you were better..” - Jim Rohn
Secondary properties will be hit will a higher surcharge on their flood insurance coverage
Rental properties, businesses, and those with repetitive losses will see a surcharge of $250 a year added to their flood insurance coverage. For some, this will be a significant increase on flood protection that is already considered too expensive. Consumers and businesses have been petitioning federal lawmakers to address the issue of expensive flood insurance coverage for years, but relatively little has been done to resolve the matter. At the heart of the issue is the financially ailing National Flood Insurance Program, which is currently a staggering $24 billion in debt.
National Flood Insurance Program continues to struggle under crippling debt of $24 billion
The federal insurance program has come under financial distress due to a number of frequent and powerful storms that had caused damage in flood-prone parts of the country. Though the frequency of such disasters has abated, their financial impact has lingered. The federal program’s debt has threatened to utterly cripple it several times in the past few years.