Florida introduces new legislation that could have an impact of flood insurance premiums
Florida lawmakers are beginning to focus their attention on flood insurance. Some are calling for an extension for the Homeowner Flood Insurance Affordability Act, which was passed in 2014 as a way to reduce the insurance premiums that homeowners were paying for their coverage. The law is meant to limit premiums increases to no more than 18% in a given year, making flood protection less of a financial burden for consumers.
Legislation would assist in the development of a private flood insurance market
Lawmakers are showing support for new legislation called The Flood Insurance Market Parity and Modernization Act of 2015. The legislation would assist in the development of a private flood insurance market, which would provide homeowners with an alternative to the National Flood Insurance Program. Those receiving coverage through the federal program have been seeing major premium increases in recent years, and they have issued complaints regarding this problem, petitioning lawmakers to take action for the sake of their financial security.
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Private market would provide homeowners with more options
A private flood insurance market would give homeowners access to more option when it comes to coverage, which may allow them to find the affordable coverage that they need. The competition created by the market may have a beneficial impact on the National Flood Insurance Program, ensuring that the program is held accountable. The legislation does not total support from state officials, however, as some lawmakers believe that it is unnecessary.
Some lawmakers believe that the legislation is unnecessary
Some lawmakers suggest that the legislation would not benefit most homeowners. Notably, those experiencing significant increases in flood insurance premiums have second homes and, in some cases, rental properties. For those with multiple properties, income may not be an issue, and the financial aspects of flood insurance may not be as burdensome for these homeowners than others. Despite the opposition, however, many lawmakers are convinced that a private flood insurance market would be in the state’s best interests.