More Private Insurers Are Invited to Offer Policies
Governor Rick Scott signed a new piece of legislation that hopes to encourage more private insurers to offer flood insurance in our state, but it may take a while for you to see changes resulting from the June law.
The legislation creates a new framework for Florida insurers to offer different types of flood coverage. The basic offering will essentially be the same as the current National Flood Insurance Program (NFIP) policies, which many people in Florida have today. The three other offerings will all provide more protections.
Florida insurers have until October 1, 2019 to file their rates with the state – all of these must be approved by regulators, so prices won’t likely be dramatically higher for similar coverage. That timeframe seems far off, but it gives the state and new insurers enough time to study new flood data and build better flood maps for our region.
The 2019 deadline also means we won’t be seeing a large, new flood insurance market in the near future. The Florida flood insurance market is essentially reading a self-help book and once it gets all the way through it’ll try to follow up on those suggestions.
Why The Change?
The damage done by hurricanes, especially hurricanes Sandy and Katrina, created a $24 billion deficit in the National Flood Insurance Program by 2012. Flood dangers have been significant in many of the recent hurricanes to strike the U.S.
Congress hoped to fix this gap with a new law, the Biggert-Waters Insurance Reform, but this wasn’t well received. Many Florida residents were against the Reform because it would have:
- Raised flood premiums on more than 250,000 Florida homes.
- Created new flood maps that put more property in high-risk areas, causing some to see very large premium increases.
- Removed subsidies for flood insurance programs for the vast majority of recipients. It also would have prevented current home owners from passing on the subsidies when a home was sold.
These rules caused an outrage and the law was changed to keep many subsidies and allow them to be transferred when a house was sold.
The changes effectively stopped Florida residents from asking for a private market, even though the two million people covered by the NFIP pay an average of $3.60 in premiums for every $1 in claims.
Our Flood Partner Offers Protection Today
Today, the reason we’re looking at a private market for flood insurance is because it’s cheaper for many residents.
Private flood insurance in our state is often cheaper than the NFIP policies and many private insurers across the U.S. are actually lowering the rates of their flood insurance. Even Florida has seen a reduced premium cost leading up to hurricane season.
Through our partner network, People’s Trust is currently offering access to Flood insurance. We want to make sure you home is covered against as many dangers as possible. We also want to give you as many flood safety tips as we can.
Flood insurance is not covered by your homeowner’s insurance policy and must be purchased separately. Call People’s Trust Insurance today to discuss your Flood Insurance needs: 1-866-972-1547.
There is a 30-day wait on most new policies, so act before it’s too late.