Homeowner Flood Insurance Affordability Act became in effect on 1st April, 2005. Specifically in Florida, this Act will result to the rising of flood insurance in flood-zone areas for thousands of Florida residents. This is appropriate to those properties situated along the coastal areas and families near rivers, bays and lakes in Florida.
Unfortunately, this Act has been coming for a long time. And inevitably, various coastal inhabitants understood the increasing cost of flood insurance. This is the cost of living along the coastal areas, as said by the Vice President of Great Florida Insurance, Ellsworth Buck.
This affordable act permits the government to remove gradually the subsidized flood insurance benefited by millions of US citizens who own homes and properties in flood zones. Buck said that the state of Florida accounts 40% of all flood insurance policies resulting for Pinellas County to get extra subsidized policies compared to other US counties.
The current insurance law helps in repairing the National Flood Insurance Program. This is done by decreasing the $24-billion deficit resulting from Hurricane Sandy and Katrina payouts. The purpose is to get premium insurance tantamount to the dangers of purchasing a property in areas prone to flooding.
Florida residents with homes located in flood-prone zone will have an increase of 10% in their insurance premiums, including the yearly surcharge. Households with secondary house in a flood zone including those who get recurring floods will keep seeing their insurance premiums increased by 18 to 25% every year till they reach the appropriate level that has constant risk of flood.
Based on the Nat. Oceanic & Atmospheric Administration NOAA, the most repeated severe weather danger is flooding. With more than 90% of the natural catastrophes in America being related to flooding, this is the most expensive natural disaster as well. Conservation teams are in full support of this current act saying that the sea levels won’t stop from rising, making their habitation near the ocean more dangerous.
Florida homeowner insurance doesn’t cover black water damages and losses caused by flood. Support in federal disaster is provided as long as the president pronounces a huge natural disaster which occurs half of the time only. The availability of flood insurance secures businesses and houses through this National Flood Insurance Program.
To learn more about the rising Flood Insurance in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.