Flood Insurance Program ~ Change Eminent
I am hearing it at all the local insurance meetings, The federal, 45 year old, flood insurance program will be making major changes soon. (Soon because congress keeps moving it back). If you live near a flood zone you will want to keep informed of recent changes.
These changes will not only increase in the price of flood insurance but also the areas required to carry flood insurance will increase. As of 2013, the NFIP insures 5.6 million properties. But by the end of 2100, that number could grow to as many as 11.2 million
A recent article by “Mother Jones – Explains that the new 257 Fema Study, 5 years in the making, blames climate change as the number one reason that change is needed:
Like previous government reports, it anticipates that sea levels will rise an average of four feet by the end of the century. But this is what’s new: The portion of the US at risk for flooding, including coastal regions and areas along rivers, will grow between 40 and 45 percent by the end of the century. That shift will hammer the flood insurance program. Premiums paid into the program totaled $3.2 billion in 2009, but that figure could grow to $5.4 billion by 2040 and up to $11.2 billion by the year 2100, the report found.
For the program to stay solvent, the average price of policies would need to increase by as much as 70 percent to offset projected losses, according to the FEMA report. That means individual policyholders who now pay an average rate of $560 per year could have to pay as much as $952 per year by 2100.