Flood Insurance info

A representative from a local insurance agency will be in our office tomorrow to provide updates regarding flood insurance – a hot topic for shore property owners.  I will post an update after the meeting.

In the meantime, I am reading notes from the FEMA web site regarding the pending changes (ironically, in place or pending prior to Sandy).

On July 6, 2012, a law took effect requiring FEMA to take immediate steps to eliminate a variety of flood insurance subsides.  The insurance discounts currently in place will be phased out over a period of time.  Starting January 1, 2013, flood insurance premium rates for subsidized non- primary residences will begin increasing.  Although the legislation called for a 25% increase over 4 years, there is pending legislation that will modify this time frame to 12.5% increase each year over an 8 year period.

Keep in mind, most flood insurance policies range from $400 to $1800 per year (depending on the elevation of the structure)- often more reasonable than the typical home owner’s policy.