Flood Insurance Rates Set To Increase For Subsidized Premiums
Flood rates are set to increase across the country, under a new federal law. While some people in Florida are about to deal with soaring premiums, North Central Florida will be one of the least affected areas within the state.
The people that will be mostly affected are those with homes which qualify for lower premiums. A worry for many residents as Florida is among the states with the highest rates of people covered by subsidized flood insurance.
Brad and Billie Trussell have been living on the Santa Fe River for more than a decade now. "You gotta drive 3 miles down a bumpy dirt road to get here but once you get here you're in god's country and we love it," Brad said.
Their backyard leads to the river but such a beautiful scenic view comes with a cost; and that's dealing with occasional floods, something they're used to. But what they're not prepared for is a flood rate increase.
"When congress acted to rescue the flood insurance program after Hurricane Katrina... no one could predict the size of the rate hike they are now sending consumers," Bill Nelson Florida Senator said.
People with subsidized premiums could see their discounted rates dissolve as a result of the "Biggert-Waters Flood Insurance Reform Act."
An act passed last year by congress in an effort to help reduce a multi-billion dollar deficit in the national flood insurance fund.
Brian Williams with McGriff-Williams Insurance says North Central Florida won't see as much of a change as other areas throughout the state.
"You know in this area, fortunately for us we're not going to feel as much. Unfortunately for the folks that live on the coast, they will be feeling the effects of the flood program and getting 25 percent rate increases," Williams said.
With a waterproof home and experience handling floods, the Trussells say while flood insurance is mandatory for their home, it doesn't do much for them, in the first place.
"We pull together, we're family here and we pull together and help one another. So therefore I don't feel like there should be an increase," Billie said.
The rate hikes, which are supposed to go into effect on Tuesday; essentially, what it does is remove federal subsidies from properties in flood zones.
For the total number of subsidized policies by county and state, click here.
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