Coastal residents and property owners in designated flood zones may have to pay significantly more for flood insurance starting next month. Gov. Rick Scott is asking Congress to take action before the higher premiums impact Florida’s economy. Premiums for many policyholders under the National Flood Insurance Program will jump starting October 1st.
A federal law passed last year requires an increase in rates to make the program more financially stable. The U.S. House voted to postpone the increase for one year, but the Senate hasn’t stepped in.Gov. Rick Scott sent a letter to Florida Senators Bill Nelson and Marco Rubio urging them to adjust the rate hikes. He noted that in cases where new maps move a property into a flood zone, homeowners may have a tough time selling – because potential buyers will have to purchase expensive flood insurance in order to get a mortgage.
Scott says Florida families have paid far more into the program than they’ve gotten back in claims. And, he says Florida’s strong building codes and efforts to mitigate hurricane losses have reduced exposure for the flood program.