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Flood Insurance Changes - Why Is The Media Ignoring This Impending Disaster?
Flood Insurance Changes - why is the media ignoring this impending disaster? The Biggert Waters Flood Insurance Reform Act goes into effect on October 1st, 2013!
Here is an example of the changes:
A single family home on Treasure Island with a value of $130,000 that currently has an annual flood insurance bill of $1300 will have an annual cost of $5300 for the SAME coverage.
How is it going to work? It is a little complicated but basically, if you currently have flood insurance and you keep it up, your increase will be gradual. If you purchase new, you pay the higher premium! This means that many potential waterfront closings will not be taking place once people realize what they are going to be paying.
In addition to this, lenders who are requiring flood insurance on the property due to the flood zone map location are going to require that the annual flood insurance be paid in full prior to closing!
What I do not understand is why the media is not covering this? My brokerage had a meeting yesterday to discuss this (and the new Florida contracts) and were all urged to sign a petition. We, as Realtors, have ... more
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