8/18/2023 0 Comments Florida flood insurance cost![]() ![]() ![]() No longer will some policyholders be subsidizing the costs of others living in riskier areas. Further, it will provide property owners information on their full risk rates, which is critical in encouraging mitigation actions to reduce flood risk. This new rating methodology is a more accurate and equitable way to determine a property’s unique flood risk and the cost of repair. Lisa Miller of Lisa Miller & Associates is a disaster insurance and recovery expert and a former deputy insurance commissioner in Florida, with more than 30 years of experience in the insurance industry.įEMA’s Risk Rating 2.0 Florida Profile shows that nearly 96 percent of current policyholders’ premiums will either decrease or increase by $20 or less per month. Roughly two-thirds of policyholders with older pre-FIRM homes (pre-1970s) will see a premium decrease. ![]() This new program, called Risk Rating 2.0, simply applies modern catastrophe modeling and actuarially sound rates to the in-debt, 50-year-old NFIP. View more information about the FEMA’s CRS program.April 1 st marks the final rollout of the National Flood Insurance Program’s (NFIP) new rate changes, and as a former deputy insurance commissioner in Florida, it is welcomed news not only for those residing along Florida’s miles and miles of coastline, but also those living inland in areas prone to flooding.Īccording to the Federal Emergency Management Agency (FEMA), there are over 114,000 single-family homeowners in Florida who will benefit from decreased premiums under this new rate structure. Key West is advancing from a CRS Class 7 rating to a Class 5. The CRS What-If chart from FEMA shows the flood insurance statistics for Key West, and opportunity for reduced flood insurance costs. This savings comes on the heels of the Key West Fire Department’s successful efforts to reduce fire insurance premiums by getting the City reclassified as a Class 1 community by the Insurance Services Office (ISO) , upon which fire insurance rates are based. The average policy holder will likely save about $494, which collectively will save the community $3 million annually. Key West property owners pay $12 million annually for flood insurance coverage through the NFIP. There are currently 8,000 active flood insurance policies within the city, with an average annual cost of $1,510 per policy. ![]() Current Amount Paid for Flood Insurance Policies Local stakeholder groups, such Fair Insurance Rates for Monroe (FIRM) and the Key West Association of Realtors used their respective roles to help the City earn the 2,500 CRS points needed CRS Class 5 rating. The first discount (15%) was awarded Octoand upgraded to 25% October 1, 2020. The City worked diligently with FEMA to bring the community into compliance with FEMA standards to make the City eligible to apply for discounted rates under the Community Rating System. This discount is the result of several years of painstaking work, which included a major revamping of the building permitting and inspection process, so the City could demonstrate it’s exceeding the basic requirements necessary to participate in the flood insurance program and worthy of this increased discount for its citizens. The discount increased from 15% to 25% for new policies and existing policies renewing after October 1, 2020. The Federal Emergency Management Agency (FEMA) - which administers the National Flood Insurance Program ( NFIP), approved the enhanced discount, which will benefit most of the nearly 8,000 policy holders within the city and collectively save policy holders $3 million annually. As of October 1, 2020, most flood insurance policy holders in Key West will enjoy an even greater discount on their rates. ![]()
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