Homeowners Are Feeling the Pinch from Rising Flood Insurance Rates.
Homeowners throughout the Tampa Bay area could see flood insurance rates rise, again. Simply, the National Flood Insurance Program, which provides many such policies in the region, is likely to continue to raise insurance rates for homeowners. The reason is easy to see, as flooding continues to be a concern as massive hurricanes continue to push into the area. Yet, consumers have other options and solutions that could help them reduce those rates significantly.
Why Rates Are on the Rise
In 2014, Congress put a temporary reprieve in place to reduce some of the significant cost increases the program required at the time. That break only paused the increase, and now, three years later, homeowners are beginning to feel rates increase again. The sharp rate increases hope to stabilize the program which has been financially crippled since Hurricane Katrina. To overcome the current deficit, Congress focused in on low-lying areas, creating rates that were 20 percent or higher for this regions. Other solutions offered – such as raising homes, were not exactly feasible.
Some homeowners are struggling significantly with the double-digit increases that may continue to come. Many have taken to selling homes in this area. Others are finding it increasingly difficult to manage financially. Real estate agents throughout the region have made it standard practice to warn would-be home buyers about these incredible rate increases, the potential for more before they buy a home along the coast.
Private Market Solutions Exist
Another option for homeowners is to seek out a private insurer. A few insurers have begun offering private flood insurance policies that significantly undercut the cost of the federal program. It’s important to know that these policies are limitedly available. However, when in place, they can provide homeowners with incredible access to cost savings on a high-risk property. Insurers can be very particular about who they insure, which can make securing policies more difficult for some.
The expectations, according to analysts, is that flood insurance rates subsidized by the federal program will continue to increase. Some expect this to increase at a rate of doubling every four to five years depending on location. Property owners without a mortgage may be able to avoid buying the policy, but that can be incredibly risky in the Tampa Bay area. For others, the solution lies in purchasing a private insurance policy.
Homeowners have options. Dimmitt Insurance can help Tampa Bay homeowners to learn about specific policy options that may be available that work around the National Flood Insurance Program while still offering cost-effective pricing.
Dimmit Insurance is an independent insurance agency. This means our team of licensed insurance professionals have access to many companies to find you the best value for your Florida flood insurance. Call us today for a no obligation flood insurance quote. We shop many insurance companies to find you the insurance that is best for you. Call today (866) 763-6627 or use our online quote request form.