Rising Rates Caused by Rising Water
Flood insurance rates have already begun to increase for Second/Vacation Owner's flood insurance policies back in January 2013 by as much as 25% per year and are expected to hit all other home owners in October 2013. Florida homeowners and business alike should expect hefty increases most likely in October for major flood areas while some may see a decrease. The Bigger-Waters Flood Insurance Reform Act of 2012 (BW-12) was put in place by congress to reassess the National Flood Insurance Program (NFIP). These changes were deemed necessary by legislation in order to make the program more financially stable.
While many home owners in the most risky of flood areas will see a flood insurance increase, some home owners in lower risk areas may see rate decreases. It is important that policy owners visit FEMA to see what true impact the Flood Insurance Reform Act of 2012 will have on their own individual policy.