In case you missed the article by Lalita Clozel in this
morning’s (Mar 19, 2019) Wall Street Journal, flood insurance rates are being revised. FEMA, the department that administers the
National Flood Insurance Program, will start a new assessment of properties with
several variables – hurricane rainfall, distance from a body of water, coastal
surges, and replacement cost of the home – instead of using a single formula
for an entire flood zone.
This will apply to inland river and coastal flood plains and
zones, but the biggest impact is expected in coastal states. It’s thought that homeowners with more
expensive homes will face higher premiums while lower-cost homes may see a
premium decrease.
The new rates will be announced April 1, 2020 and go into
effect October 1, 2020. Due to
congressional restrictions on rate increase amounts, the premium changes may
have to be phased in over a longer time period.
More details should be released soon. Feel free to call me with your real estate questions at 810-220-1478.
photo courtesy of think4photop / FreeDigitalPhotos.net
