Changes to the Federal Flood Insurance Program coming January 2013
A fellow member of Active Rain posted this and I want to let my readers know. I was not aware of these pending premium increases.
Many homes in the area where I specialize have been re-categorized into a flood zone - for the first time ever. This has come as a shock of people who've lived there for years and paid off their mortgage. It can surprise buyers, too, when it's time to get a purchase loan.
There are some significant changes in the Federal Flood Insurance Program coming January 2013
· Standard flood insurance premiums will increase an average of 5% for policies written or renewed after October 1, 2012.
· V Zone (coastal high-velocity zones) will increase more - between 8% and 10% on average.
· Preferred Risk Policies will receive a double dose - an increase of 3% in October and then another increase closer to 10% in January.
· For the first time the flood program will differentiate between primary and secondary homes. FEMA has always subsidized secondary home rates, but will not longer. The premiums on secondary homes will be going up 25% in beginning with January 2013 renewals.
· The Flood program will use the following in determining whether a home is primary or secondary:
- Mailing Address
- Voter Registration
- Driver's License Address
- Do they reside at the residence at least 80% of the time
For more information on the flood changes or flood Insurance, please call or visit us
we can help.
Website: www.nat-ins.com
Email: frank@nat-ins.com
Office: 863-624-4000
Cell: 407-493-2078
Fax: 863-624-9914
Comments(1)