Live in A Flood Zone in Florida? Here is the Latest Update....

By
Real Estate Agent with DWELL REAL ESTATE BK3105105

If your home is in a flood zone, you are probably still suffering from the sticker shock of either the increase in your flood insurance or the shock of not being able to sell your home because of the outrageous insurance that will be required of the new owner.

Although Congress did pass a bill on January 16, 2014 that prohibits FEMA from implementing future premium increases on "grandfathered properties" for the next nine months, it allows premium increases that are levied on the buyers of a property. 

If you have not contacted your Senator, now is the time to do so.  The Senate is voting on the Homeowner Flood Insurance Affordability Act (S. 1926) on January 27, 2014.  It will allow a four year moratorium on increases for buyers of property including second homes and businesses. Let them know that you want it passed, clean and with no nasty amendments that dilute it.

The housing market has been slowly recovering and now neighborhoods in flood zones are feeling the result of these onerous rate increases resulting in drastic price reductions by those owners who absolutely have to move and those who do not are taking their homes back off of the market while they try to decide how they are going to pay the new rates.

Not all waterfront properties are owned by wealthy people and not all waterfront properties are valuable enough to be charged the rates that are in effect now.  When a home valued at $260,000 now has a flood insurance bill of $5,400 annually, the home becomes worthless and the value of the property is in the lot only.  This is a serious situation and let's hope it is fixed. 

 

Posted by

 Looking for a great real estate agent in the Sarasota area? 

 

Marnie Matarese |Broker Associate | GRI|RSPS|SRES | DWELL Real Estate 

MARNIE@CALLMARNIE.COM 

DIRECT:  941-809-8099 

 

www.callmarnie.com  

1947 Ringling Boulevard

Sarasota, Florida 34236

 

  

          

 

 

 

 

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Florida Sarasota County Sarasota
Groups:
All Things Florida
Anything Southwest Florida Area
Sarasota Real Estate
Siesta Key Real Estate
Bartender, Make it a Double
Tags:
senate
flood insurance
fema

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
2,352,394
Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Thanks for the update, Marnie.  Who would have thought that "Flood Zone" properties might become stigmatized?

Jan 21, 2014 09:29 AM #1
Ambassador
3,085,237
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

This is a tough one and as someone who owns flood insurance, I can see both sides.  The government subsidies to flood insurance going away is what is causing the increase.  Yea....Washington isn't a money spigot.  But yes, when it comes to individual pain, we want the spigot fully functioning.   Get serious about the budget in a way that hurts someone else.  

Jan 22, 2014 01:02 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
398,043

Marnie Matarese

Showing you the best of Sarasota!
Buying or Selling? Looking for information? Contact me...
*
*
*
*
Spam prevention