Deal Reached to Delay Increases in Flood Insurance Premiums

Key House and Senate members have reached a bipartisan deal to delay changes to the federal flood insurance program that are raising premiums for many homeowners. The bill would require regulators to address affordability of the coverage before implementing rate hikes.

Here is a link to the entire article from the Insurance Journal

Hopefully, this signals a desire to reconsider the increases in flood insurance premiums that in some cases could increase flood insurance premiums as much as ten fold.  This article from today's Sarasota Herald-Tribune illustrates how the increases in flood premiums are hitting middle income families in the community.  Many lawmakers stated that these increases were only going to hit the rich, waterfront properties, but as you can see from the Sarasota Herald-Tribune article, the increases are hitting all income brackets.

There will be much more to some on this subject as this is only a four year delay of the proposed changes.  Part of the bipartisan deal calls for FEMA to do an affordability study which will hopefully point out the burden placed on homeowners. 

There are a number of groups in favor of the increased flood premiums as pointed out in this article  This promises to be a fight for many years. 

Please be aware that homeowners insurance policies do not cover flood damage.  Not having flood insurance in Florida is a serious gamble that could have disastrous consequences effecting your most valuable asset.  Protect your investment in your home by purchasing flood insurance.

Please call Boca Insurance Group with any questions about flood insurance or any of your insurance needs.  We are a full service insurance agency offering advise on all forms of insurance. 

Boca Insurance Group- 833 SE 9th Street, Deerfield Beach, FL 33441- 954-596-0691

www.bocainsgroup.com  pat@bocainsgroup.com

South Floridians- will your flood insurance premiums increase or will your zone change?

Many changes are on the horizon for the National Flood Insurance Program.  FEMA has redrawn the flood zone maps and is in the process of changing many flood zones and Congress passed legislation last year making changes to the long running program which will increase many homeowners premiums, in some cases substantially.

If you live east near any body of water (not just on) your rates will likely increase as a result of the law that now requires premiums to be actuarially appropriate.  Premiums will increase 25% annually until the appropriate premium is reached.  Additionally, homeowners with "second" homes have already seen increased premiums as Congress stipulated these owners will be required to pay a larger share of the premiums.

But while some homeowners or buyers face a bigger bill for waterfront property, some people who live in relatively high and dry areas at the edges of flood plains will get lower rates for flood insurance. The reason: periodic updates of federal flood plain maps will show they live in low-risk areas.  Additionally, many homes that were in a "high risk" flood zone will now be located in a "preferred" flood zone.  Mortgage companies do not require flood insurance be purchased for home located in "preferred" flood zones. 

It is still advisable to obtain flood insurance for any property in South Florida.  REMEMBER- HOMEOWNERS INSURANCE POLICIES DO NOT COVER DAMAGE CAUSED BY FLOODING (RISING WATER).  Do not get caught without flood insurance. 

Click Here for an in-depth article form the Sun Sentinel outlining some of the changes.

As always, we here at Boca Insurance Group will help you navigate the flood insurance maze ensuring your receive the proper coverage for the proper premium.  Call us at 954-596-0691 or e-mail me at pat@bocainsgroup.com  with any questions.

Flood Insurance Premiums Expected to Rise

South Florida consumers need to pay close attention to Washington, DC as FEMA begins to increase rates to make the Federal Flood Program pay for itself and not require subsidies in the future.  Click here for some brief information about the expected increases.

All of South Florida is in a flood zone- it just depends on your exact location if you are in a high risk flood zone and therefore required by your mortgage company to purchase flood insurance.  FEMA has adjusted the flood zone mapping in South Florida and therefore many consumers that were in high risk flood zones in the past are now in preferred flood zones.  This means their mortgage company may not require flood insurance any longer and their rates should be adjusted to the new zone.   Miami Dade counties flood zones were adjusted last year and Broward and Palm Beach are soon to follow.

Despite the increase in premiums it is extremely important that South Floridians have flood insurance.  Homeowners insurance policies exclude flood damage.  Most of the damage from Hurricane Sandy in the northeast was from flooding with the vast majority of homeowners not covered. 

Flood insurance is still very inexpensive- a policy that covers $250,000 for the home and $100,000 for you contents can cost as little as $412.00.  To purchase flood insurance call Boca Insurance Group at 954-596-0691 or e-mail us at pat@bocainsgroup.com.

Armstrong's Insurance Problem

When Lance Armstrong won the 2004 Tour de France, his sixth of seven wins, a $5,000,000 bonus was triggered and due to Armstrong for this unprecedented win.  SCA Insurance insured the bonus and refused to pay the bonus sighting a 2004 book that accused Armstrong of doping.  After a lengthy court battle, SCA settled the claim for a reported $7,500,000.  The additional $2,500,000 covering interest and legal costs.

Armstrong's admission during a lengthy interview with Oprah puts Armstrong in a difficult position and will likely begin the legal process anew as SCA goes after the $7,500,000 payment.  The NY Times has an article here which outlines some of the legal problems Armstrong may face.  This article was written before the admission but is still relevant with regard to the insurance problem.

Boca Insurance Group handles all forms of insurance including exotic policies such as the policy the US Postal Cycling team took out of the bonus for Armstrong's win.  Call us today to discuss your options- 954-596-0691.