TAMPA, Fla. (WFLA) — Floridians are already paying some of the highest property insurance premiums in the country, and soon many will likely be paying more for flood insurance too.
With hurricane season just three weeks away, how high will flood insurance premiums go? Who is impacted? And why is this happening?
8 On Your Side Investigator Mahsa Saeidi looked into it, and found out that nine out of ten people get their flood insurance through the Federal Emergency Management Agency (FEMA), which sets the rates. In 2021, for the first time in decades, FEMA changed how it calculates your premium. This unfortunately means many Floridians will be hit with an increase.
In the past, your rate was based on your zip code, but now it will be based on your specific flood risk. FEMA says they’ll look at the characteristics of your home, its elevation, and distance from rivers and lakes.
Insurance Broker Rob Samuels said before, people who were further from the water were subsidizing those closer to the water. But that won’t happen anymore.
“The thinking is hey, if you want to purchase a property in Naples, Florida, in Sarasota, Florida…you know the inherent risk in purchasing that property. If you want to go ahead and buy that property, you need to pay your full share of what that flood insurance premium is,” Samuels said.
FEMA’S new system means many will be paying a lot more for flood insurance.
In Hillsborough County, FEMA data shows that on average, premiums will double, going from roughly $1,132 to $2,550. Homeowners in Pinellas and Sarasota, on average, will see a similar increase as well.
But Samuels says some families will see their flood insurance stay the same or go down. This is crucial.
If you’re getting flood insurance for the first time, you’ll have to immediately pay this higher rate.
But if you’re just renewing your policy, your increase is capped at 18 % per year.
So that’s going to make it a little easier on people.
If you want to talk about your flood insurance, email Mahsa at msaeidi@wfla.com.
