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    Categories: Florida

What Florida Needs To Know About Flood Insurance

On Tuesday October 1st, 2013, flood insurance premiums will shoot up for thousands of Florida businesses and homeowners. There are some things you should know.

  • The flood insurance program was created in 1968 to make insurance affordable to owners of structures already built in risky areas.
  • Flood coverage is required only for holders of federally backed mortgages.
  • Property owners with a history of flood losses will see 25-percent annual increases.
  • Business structures and older primary residences that have experienced severe or repeated flooding gradually will lose their subsidized rates. They will also see their premiums increase by 25 percent a year until they reach the full-risk rate.
  • These properties in high-risk areas will face this increase for their flood insurance that mortgage lenders require them to buy.
  • Some 51,000 property owners in Pinellas County could be affected by the new flood insurance rates taking effect.
  • Roughly one in eight of the more than 2 million Florida properties covered by the program are still subsidized, but most owners of more recently built homes and businesses already pay rates that reflect the actual risk.
  • Only 20 percent of all policies provided by the National Flood Insurance Program nationwide will see their premiums rise this year as a result of the Biggert-Waters Flood Insurance Reform Act.

 

Sources: The Tampa Tribune; Sun Sentinel

Samantha Pysher:
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