“your flood insurance premiums could rise up to 18 percent each year”
A recent article in the Miami Herald reports:
“FEMA confirmed to the Miami Herald that it is looking into switching to risk-based pricing in 2020, which would end the subsidies most coastal communities enjoy on their flood insurance premiums and show the true dollar cost of living in areas repeatedly pounded by hurricanes and drenched with floods — like South Florida.
“That means insurance is about to become very expensive, and it kind of sounds the bell that these are high-risk areas,” said Wayne Pathman, a Miami-based land use attorney and chair of the city’s Sea Level Rise Committee.
Premiums through the National Flood Insurance Policy are already rising an average of eight percent this year; the first wave of pricier policies started in April. That brings the average annual price (including surcharges) for a policy holder to $1,062.
It’s all part of a strategy to make the NFIP financially stable. The program is $20 billion in debt (and that’s after the government forgave $16 billion of that debt last year) because it pays out much more each year than it takes in.”