Flood Insurance costs to increase by up to 20%

Norton Hammersley Firm News, Real Estate Law 0 Comments

Back in May 2014 Sarasota Law Firm Norton Hammersley, Lopez & Skokos brought you the latest news on Flood Insurance Regulation and Premiums with the Homeowner Flood Insurance Affordability Act of 2013.  You can read the full article here.

More Flood Insurance news for the residents of Sarasota is that Floridians will be anticipating up to a 20 percent increase in the cost of an average flood insurance policy because of premium hikes and surcharges being added to all renewals starting in April 2016.

Last year Congress repealed the most dramatic rate hikes planned for the National Flood Insurance Program, but it remains in debt and increases in price are aimed at bringing financial solvency to the system.

Unfortunately, Sarasota & other Florida County residents will be picking up the majority of the additional cost. Florida has nearly one-third of all flood policies in the country, including over 100,000 policies in Sarasota and Manatee counties.

Sarasota County are concerned about the rising rates as an additional 42,700 properties could soon be added to high-risk flood zones which forces homeowners to buy flood coverage if they have a mortgage on their property.

Surcharges are being imposed and added to all policies at a flat rate.  This is causing even the cheapest of policies to look high.

Although the increases to Flood Insurance policies are not having an immediate effect on the real estate market costs are expected to rise more over the next few years and could have an impact on house prices, especially for the owners of older, low-lying structures near the water who currently pay below full risk rates.

Norton Hammersley’s real-estate practice group provides comprehensive legal representation to individual and corporate clients in the acquisition, development and sale of residential and commercial real property, leasing and financing of single-family homes, multi-family projects, residential subdivisions, hotels, office buildings, condominiums, shopping centers and other real-property developments throughout Florida. For more information contact us here

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