Florida’s property owners have battled with ridiculously high flood insurance premiums for years. Believe it or not, they have been forced to overpay in order to help the National Flood Insurance Program (NFIP) stuff its coffers for the very reason that we have this program in the first place – an act of nature causing major flood damage.
According to TampaBay.com, “about 270,000 properties could face huge flood insurance rate hikes.” Of those 270,000 properties, Pinellas County has a bull’s-eye on its head, claims the news site, with “51,000 affected properties, roughly an eighth of its homes and businesses.”
Here’s the kicker, Florida will still be paying three-times more than New Jersey, the state most affected next to Florida.
We’ve mentioned before that in order for the National Flood Insurance Program to stay solvent that Florida’s investment property owners and commercial property owners will be affected the most. This still hasn’t changed.
The second group of property owners to be affected will be homeowners in older low lying homes. Unfortunately, property owners will not know if they will be affected until a new flood zone map is issued for the state.
Again, we know this isn’t completely new news, but what is interesting is the fact that Louisiana Sen. Mary Landrieu is fighting to have the policy paused while FEMA conducts a 3-year study. Florida’s Sen. Bill Nelson, isn’t completely on Landrieu’s side, but he is asking for more information to be provided by FEMA before making his decision.
Meanwhile, FEMA officials are trying to assure the public and congress that less than 20% of flood policy holders will be affected.
As always, whenever new news comes up about regarding the National Flood Insurance Program’s potential rate hikes, we will keep you posted
To read more about the 2012 Biggert-Waters act, which is responsible for this situation, visit TampaBay.com.