This month, homeowners will start to pay more for their coverage against water damage.
Homeowners are being advised that Florida flood insurance is getting more expensive this month. In fact, the majority of residents will find themselves paying significantly more.
Flood insurance premiums will be on the rise regardless of whether or not a claim has ever been made.
The upward trend of Florida flood insurance rates has been worrying for the state. That said, the insurance industry is hoping to assuage consumer fears. There are still many ways that homeowners can take advantage of important ways to save. In fact, there are two primary ways that can cut a significant amount from what homeowners pay for flood insurance coverage every year.
The Federal Emergency Management Agency (FEMA) runs the National Flood Insurance Program (NFIP). It has stated that the average Florida homeowner will experience a 6 percent increase in what they had previously been paying for their flood coverage.
State residents are not pleased to hear the Florida flood insurance rates will be rising yet again.
That said, the cost of flood insurance in the state has been on the rise. Consumers have been warned that they will need to pay more to cover the expenses related to claims. The rate increases are required by federal law.
Congress has been working to try to compensate for the many billions of dollars of debt racked up by the NFIP. That said, even as lawmakers struggle to improve the state of the NFIP, more frequent and severe storms drive the costs and debt higher.
Unfortunately, this has pushed flood insurance premiums ever higher, to the point that they are cost prohibitive for some. The Associated Press reported that it is becoming increasingly common for Floridians to drop their insurance policies completely. Over the last half decade, the number of federal policies in the state have dropped by about 15 percent, said the Associated Press report.
Furthermore, it doesn’t appear that relief from Florida flood insurance rate hikes will be coming soon. As storms continue to wreak havoc in the state, the cost of claims payments continues to rise, forcing the NFIP to need more income to make its payments.