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.