Shocked Shocked 2: For 1.7 Million Floridians, Flood Insurance Premiums Set To Rise

[hatrack]

The vast majority of the more than 1.7 million households in Florida that have flood insurance policies through the National Flood Insurance Program will likely see their rates rise as Congress faces a Sept. 30 deadline to reauthorize the program that’s drowning in debt. The NFIP owes more than $20 billion, money it’s had to borrow, for the most part, over the past 15 years amid intensifying floods and a proliferation of coastal development that’s simultaneously exposed more properties to that flooding.

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Under the current system, flood zones are used to calculate a property’s flood insurance premium. Under Risk Rating 2.0, premiums will be tied to “the specific features of an individual property.” Today, policyholders see an average premium increase of about $8 a month. Under Risk Rating 2.0, 80% of policyholders in Florida will see their premiums increase, with the vast majority of those increases $20 or less per month ($240 per year or less). The remaining 20% will see their premiums decrease. For policyholders whose premiums will be going up, annual increases will be capped at 18%.

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Starting Oct. 1, new policies will be subject to the new rating methods, and existing policyholders who are eligible for renewal will immediately be able to take advantage of decreases in their premiums. Premium increases for others won’t kick in until April 1, 2022.

Given that many policyholders will see their premiums increase, it’s no surprise that many oppose the change. A City Council in Texas recently unanimously approved a resolution opposing the new rating system, and politicians like Republican Congressman Steve Scalise from Louisiana are speaking out against it as their constituents complain about rate increases. But FEMA and others say the changes are necessary if the NFIP is going to survive.

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https://www.sun-sentinel.com/news/environment/fl-ne-climate-change-flood-insurance-20210903-mrsfj2htuvfmvgifrtd7kar4p4-story.html?utm_source=newsletter&utm_medium=email&utm_campaign=Morning%20Update&utm_content=1581630717017&smtrctid=34665866#nws=true

[lark]

1. The rates should skyrocket so they pay the actual cost or get out.

Why should we subsidize their desire for million dollar houses on the beach?

[jimfields33]

3. Hmmm. Same could be said in many places across the country

Fires in California. Tornadoes in Midwest. Flooding in New Jersey and New York. Etc.

[lark]

4. Think it's going to become necessary in many coastal places.

Tornadoes aren't limited to any particular section and neither are fires - however coasts and some rivers have very well known and predictable dangers of flooding with hurricanes/storms every year. Sadly, don't see any way to provide mitigation in CA when the entire state really could be in danger? Hope they can figure this out soon.

I live in FL, but we chose a house that was pretty safe from floods, being 20 feet above the river and it's never flooded here, even with Dora - the only hurricane to actually hit Jax. We bought right after Hugo went by as a tropical storm and dumped 18" on water on the town and our property was dry, while all the homes on the North and Westsides flooded or nearly did. We have some big trees, but they were all in great shape. We've had a number of big unsafe trees removed over time, if we hadn't we would have had our house destroyed. So many people don't take care of their trees and cause their own destruction or make stupid purchases in the first place.

People I feel sorry for are those who bought on the coast, in previously safe places, that because of climate change and ocean rise are now not so safe. Think the government should buy out those places and do hurricane mitigation there as well as historically hit places like Grand Isle in LA and Paradise in FL.

[bronxiteforever]

5. There is no wildfire national insurance fund unlike National flood insurance.

“If you live in a geographic area that has a high risk of wildfires, you might have a tough time finding affordable homeowners insurance. Some insurance companies will charge higher premiums, increase deductibles, cap payouts or, in some cases, decline to write insurance policies for homes in high-risk areas, such as parts of California.”

https://www.forbes.com/advisor/homeowners-insurance/wildfires/

I don’t know of a National tornado fund either. It is my understanding that you have to pay your private insurance company for coverage.

[bronxiteforever]

2. K&R. It just makes sense to look at the individual property

before insuring it. It is small price for most homeowners to obtain this federal BENEFIT.

[Sneederbunk]

6. Because the water is set to rise.