Florida Flood Insurance Market Gradually Changing
If you are a Florida resident, you are certainly familiar with flood insurance. This type of insurance protects your property against water damage, which in Florida, is a common occurrence. Whether you live in a low lying area on the east or west coast of the state or are concerned about inclement weather causing water damage, flood insurance is probably a good investment for you. Flood insurance can be obtained for your home, apartment or commercial property but can be quite expensive. Lucky for you, prices might be coming down.
There have been a number of changes to flood insurance legislation over recent years, some coming down from a Federal level. After Florida was battered by a number of hurricanes in the past decade, claims made to the National Flood Insurance Program forced the already strained operation into massive debt. In 2012, Congress decided to take action and passed the Biggert-Waters Act. This law essentially stripped those living in areas that were prone to flood damage of the government subsidy that kept their insurance premiums down. As a result, flood insurance costs in these areas went up astronomically. Even with refusing government subsidies to these individuals, the program incurred more liability with the striking of Hurricane Sandy.
At this point, state representatives began to aggressively push back against the high insurance premiums for those in dangerous areas. Florida took matters into its own hands and began promoting the entry of private insurance carriers into the flood insurance arena. They made it easier for these insurers to operate by loosening up some of the state’s insurance regulations.
Now, private insurance companies such as The Flood Insurance Agency, Homeowners Choice Property and Casualty and Gridiron Insurance Underwriters are all offering flood protection policies to individuals and businesses in the State of Florida. These policies are available to cover homes, apartments and commercial properties that are in high risk zones and that pay high premiums. Although it is a gamble for these insurers, it is working out to reduce the cost for policyholders at this time.
If you have a substantial property insurance claim, including those stemming from a flood, it is a good idea to contact a seasoned property insurance attorney. Contact Tampa, Florida attorney Jeff Pekar for a free initial consultation.