Federal Flood Insurance Rates Spiking For Miami Residents, And It's Only The Beginning

[hatrack]

The letter might have already come in the mail. “Your building is at high risk for flooding,” it declares in bold. There are ominous charts warning that if you don’t take action, your flood insurance premium could rise up to 18 percent each year. The bottom line: your flood insurance premium is going up again — and under a policy change the Federal Emergency Management Agency is considering, it could skyrocket even more in coming years.

Last time the National Flood Insurance Policy got this type of revamp the results were dramatic. Premiums doubled, tripled and more in flood-prone areas. In one extreme case, the premium on a $300,000 house in Monroe County went from $1,900 a year to more than $49,000. Congress hastily walked it back, but the motive behind the change (the NFIP’s sorry finances) has only gotten worse since then.

FEMA confirmed to the Miami Herald that it is looking into switching to risk-based pricing in 2020, which would end the subsidies most coastal communities enjoy on their flood insurance premiums and show the true dollar cost of living in areas repeatedly pounded by hurricanes and drenched with floods — like South Florida.

EDIT

The last time Congress passed a full five-year reauthorization in 2012, the measure raised flood insurance premiums tenfold in places like the Keys. There was an uproar in coastal communities, and the changes were mostly walked back two years later. Since then, premiums aren’t allowed to rise more than 18 percent annually for residential properties and 25 percent for commercial properties. But the NFIP is still deeply in debt, and experts say risk-based assessment is one of the best ways out.

EDIT

https://www.miamiherald.com/news/state/florida/article215162440.html

[Girard442]

1. Deplorables hate subsidies and handouts -- except for the ones they get.

Flood insurance supplied at substantially below market rates is not materially different than SNAP benefits but try telling that to Florida Man.

[beachbum bob]

2. anothor trump admin issue Scott will have to defend in his run for the Senate

as you can't trust any republican to take him on

[mountain grammy]

3. Lived south of Houston 1978 to 1984

six years, 3 floods. My neighborhood was about 1 foot higher than the rest..didn't flood. Flooding was common and is worse now but flood insurance was subsidized and cheap. Texas don't need no flood control.. that's for pussies. Just flood us with money to rebuild and Jesus take the wheel.

[dameatball]

4. Anyone who has to have flood insurance in any state is likely to see an increase.

Some more than others.

[mitch96]

5. Plus they (FEMA) uses the shotgun approach to determine if you are in a flood zone..

I voluntarily had flood insurance for years (south florida). Then one day I get a notice I'm
automagically in a flood zone and my rates DOUBLE and it's MANDATORY cause I have a mortgage... I get a engineer to do a survey and it turns out i'm NOT in a flood zone, I'm a whole (don't laugh) NINE FEET above sea level that takes me out of the flood zone. Under 6' and tag, your it.. It took me over six months to get off the list. Had to get letters from Mtg company saying they were ok with no flood insurance and then FEMA said they did not like the banks "verbiage" and they sent it back. FINALLY got the blessing of the Gov't...
They do not want to let you and your money go...What a pain in the ass...

m