There has been talk this year about flood insurance rates going up. You are probably wondering if it is true or if it is going to affect your policy. Well there is both bad news and good news about flood insurance prices that you should know.
The bad news is that prices on policies written through the National Flood Insurance Program (FEMA) are on the rise. On April 1, 2018 there will be a rate increase. If you have a flood insurance policy on your primary house, then you can expect an increase of 8% on average. If the house that you have purchased flood insurance for is not your primary dwelling, then you can expect a price increase of up to 25%. This means that if you have a flood policy on a vacation home or investment property and the policy is written with the federal program, it will become more expensive to own this property and you may want to budget accordingly.
The GREAT news is that there are now many more choices for flood insurance than just the federal government’s program. In recent years there have been many private insurance companies that have started offering flood coverage in Florida. While these private flood insurance companies do not write flood insurance in every area, they are rapidly expanding the territories where they are offering policies.
In the past, if you were purchasing flood coverage, there was no point in shopping around. The federal government was the only place to obtain coverage, and if you called 30 different agencies they all gave you the same price because they were all getting their quotes from FEMA. Today you can shop your flood insurance rates among different agencies as they have different companies to offer. Do not settle for the first price you are offered.
What this means to you is that if you get a notice that your flood insurance is going up in price, give your insurance agent a call and ask if they represent any of the private flood insurance companies writing policies in Florida. If they do then you can ask them to shop for a better rate on your flood insurance. If they do not then you can still do some legwork on your own to look for a better priced flood insurance policy.
If you have any questions about flood insurance feel free to call Artisan Insurance Group at 813-654-8472.