Tampa Bay was facing its share of problems just three years ago due to massive hikes in flood insurance rates, so much so that home sales came to a standstill in several neighborhoods. Thanks to the efforts of Congress which passed a temporary reprieve, the situation was resolved, at least temporarily anyway. Florida homeowners may need to brace for another wave of of higher flood insurance premiums.
One homeowner in St. Pete’s Beach saw their premium increase by over twenty percent for their home by the beach, and there isn’t much that homeowners can do to stop it. Options are limited to shopping the private market, paying the increased premium, or selling your home. As higher rates come in, people are choosing the option to sell.
There is some good news from all of this however. Homeowners in low-lying areas won’t be seeing the exorbitant five or six fold increase into the tens of thousands of dollars, but just like a continually rising tide, flood rates will more than likely continue to steadily increase.
The higher rates are aimed at stabilizing the National Flood Insurance Program, which faced serious financial difficulties following Hurricane Katrina and Superstorm Sandy, leaving it with a $23 billion deficit.
This information is provided by Miami insurance attorney Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.