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Old 09-13-2013, 05:20 PM
 
Location: Port Charlotte
378 posts, read 580,710 times
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This really doesn't look good for our area in terms of future home sales.
NEW: Jump in flood insurance rates could have ripple effect | HeraldTribune.com
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Old 09-13-2013, 08:00 PM
 
1,917 posts, read 2,411,238 times
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Quote:
Originally Posted by yellowsky View Post
This really doesn't look good for our area in terms of future home sales.
NEW: Jump in flood insurance rates could have ripple effect | HeraldTribune.com
The truth is this should have happened a long time ago. I pay the full cost for flood insurance and when I found out that others were getting a subsidy the first thing I thought was "I'm paying a higher price than I should so that someone else can get a subsidy and only pay 25% of fair value". Now that's not fair!

Gary
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Old 09-14-2013, 05:26 AM
 
Location: Port Charlotte, FL - Dallas, PA
4,388 posts, read 4,060,665 times
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On a somewhat related note, I see where customers of Security First Insurance will be seeing an average of a 9.3 cut in homeowners' insurance premium cost. Lucky them!
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Old 09-14-2013, 05:45 AM
 
Location: Port Charlotte, FL
3,979 posts, read 9,896,052 times
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We are already seeing many buyers not being able to afford purchases in flood zones if they are obtaining a mortgage. The quoted rates are just ridiculous. A lot of homeowners who paid cash for their home do not purchase flood insurance. Others may no longer be able to stay in their home if the rates go up too high, especially those on a fixed income. Some buyers are resulting to new construction because the new home will be built to current hurricane standards and elevation. With prices going up, interest rates going up and insurance rates going up, who knows what is going to happen. With the snow bird season coming upon us, we will see.
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Old 09-14-2013, 06:56 AM
 
Location: Port Charlotte
378 posts, read 580,710 times
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Until I read the article I didn't know about the subsidies some get on their floor insurance.
This is the first year that I have had flood insurance for the house. It wasn't a bad price so perhaps I received such a subsidy. Then again I did it on a year when, for now, we haven't had any hurricanes. Just my luck. I am not sure if I will purchase it again especially if the rates bump up as is predicted.
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Old 09-14-2013, 12:20 PM
 
Location: SW Florida
13,527 posts, read 10,179,528 times
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Quote:
Originally Posted by yellowsky View Post
Until I read the article I didn't know about the subsidies some get on their floor insurance.
This is the first year that I have had flood insurance for the house. It wasn't a bad price so perhaps I received such a subsidy. Then again I did it on a year when, for now, we haven't had any hurricanes. Just my luck. I am not sure if I will purchase it again especially if the rates bump up as is predicted.
From information in the articles that Tamre linked in her post, it sounds as though you might be able to determine if you've been subsidized or you're subsidizing others in your rates if you look at your property information with the county ( property appraisals, or tax rolls) to see the flood plain level you fall into. The articles mentioned that those whose dwellings were "below" the 100 year flood plain ( high risk flood area) were those being subsidized. That sounds to me like if you fall either outside the flood plain altogether ( I think that is designated as X in the appropriate column on the country appraisal site,) or you're within a 100 year flood plain (and required to be at an elevation of 8 feet above the ground level)- you'd see that designation of " 8AE" in the flood elevation column.

From what I can understand, seems as though the properties being subsidized would be those built in either high risk flood plains, or in 100 year flood plains before current building codes that mandated specific elevations were put in place. And what seems to be happening in these cases, is that FEMA will phase in the rate increases ( at 25% a year) for current homeowners. But if those properties are sold, it looks as though the new owners will get the double whammy and have to pay the entirety of the rates FEMA has determined for the "at risk" property. At least this is how I understand it.

It certainly is a concern for new homeowners, and those who are looking at buying real estate,especially waterfront property, $4000 is surely a chunk of change for most anyone. And what's even worse is that I've never in my flood-insurance paying days ( for our house in Miami, which was nowhere near the water and had no flooding issues in the 27+ years we lived there- an 8AE property built up at 10 feet from the street level but I sure never saw any cost break) seen any option to pay this insurance anyway except in its entirety when you get the bill.

We're in a fortunate situation in our house in PG because we have no mortgage so no lender-mandate for any insurance. We have homeowner's but have debated back and forth about the flood insurance. We're on a tidal canal with direct access to the Peace River and Charlotte, and while the house is elevated and at least 60 feet back and about 10 feet elevated from the canal, and part of our property is not even in a flood zone,that water comes in pretty quickly and gets pretty high during high tides, especially when there's a southwestern wind. I'd imagine it would be entirely possible for that water to reach the patio, and maybe the back part of the house, and flood insurance might be handy, in that event. But I can also imagine that if the rates go way up, I'd much rather bank what we'd spend on the insurance premiums,and have the money for our own repairs.I've always envisioned it as a major hassle to try and get any flood insurance claims paid.
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Old 09-14-2013, 12:38 PM
 
Location: Port Charlotte, FL
3,979 posts, read 9,896,052 times
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Here is the link to the previous post regarding insurance that Travelassie is referring to, if you did not see it.
//www.city-data.com/forum/punta...insurance.html

Here are the web links to check on flood zones, etc.
http://www.fema.gov/national-flood-insurance-program/flood-insurance-reform-act-2012
http://www.floodsmart.gov

http://www.fema.gov/national-flood-insurance-program
http://www.fema.gov/floodplain-management/flood-insurance-rate-map-firm
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Old 09-14-2013, 03:27 PM
 
24,428 posts, read 16,047,704 times
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It's gonna kill off whats left of housing prices in FL. In west Pasco the price to insure homes west of US 19 is the highest in the country. It cost around 3k a year to insure homes worth less 30 to 25k for Home owners and flood is around 1.2k now. Once rates kick up 300 to 500% you won''t be able to give these homes away for 5k unless you pay cash and go bare like i did
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Old 09-14-2013, 06:55 PM
 
16,377 posts, read 21,199,626 times
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This rate increase only affects properties that are below the FEMA required BFE (Base FLood Elevation).

For the most part, this consists of homes built around 1974 and earlier. I don't recall the exact year but approx. 1974 is when FEMA came up with the required elevation rules. So these older homes got grandfathered in and they had very low flood insurance rates because they were grandfathered.

**However, IF FEMA flood zone maps change, making any home's elevation below BFE due to the map change(even if the home was built above BFE requirements from the old maps), then insurance is going to increase. The insurance is priced based on the current required BFE. Any home below BFE pays through the nose and then some. Even 1 inch below BFE.

If you are building a new home now, it is safest to build a few feet higher than the current required elevation(BFE). This way if the FEMA maps change and suddenly require a higher BFE than last map, you have a safety net of a few extra feet of elevation.
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Old 09-14-2013, 09:55 PM
 
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Lets no get too excitited about this at most I think this only effects less than 10% of the properties in PG
Gary
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