TAMPA, Fla. — Florida is already in an insurance crisis, but the flood insurance rate could rise again.
This comes as hurricane season is just about to begin on June 1. The new estimates were announced after the "National Flood Insurance Program" switched to a new method to calculate flood insurance rates.
A recent report by FEMA shows many homeowners from the Tampa Bay area could see their flood insurance rates double.
Previously your insurance rate was based on your flood zone and your elevation. This new methodology throws out flood zones and bases your rate on more data to better assess your flood risk.
ABC Action News Anchor Jamison Uhler contacted Jake Holehouse from HH Insurance Group to learn more about what this means for homeowners.
First, Holehouse broke the new rates down by location; for example, a home along Bridge Street in Tampa might currently be paying around $430 for flood insurance.
But under this new methodology, the cost is more than $3200. Now compare that to a home in St. Pete, where the average cost of coverage is around $630.
However, Jake says under the new methodology, the actual risk-based insurance cost for this home exceeds $11,000.
Holehouse also tells Jamison that although waterfront homes are feeling a big jump in their rate cost, inland homes are also seeing an increase.
"A lot of the more inland areas, so take like a Pinellas Park as an example. They're seeing some increase, probably in the 25 to 40% type range. But when you look at a Tierra Verde, that is seeing it at the 600% per year. St. Pete Beach and Treasure Island are seeing that 200% to 400% over that 5-to-10-year horizon. And so really those coastal type communities are thfive-to-10-yearst affected," explained Holehouse.
Holehouse also says this new rate assessment will significantly impact homeowners with state-run Citizen Property Insurance.
During a special session in Tallahassee last year, lawmakers passed a bill requiring citizen policyholders in a flood zone to have matching flood insurance for their policy.
It is always essential to shop around when looking for the best coverage for you. Some private flood insurance coverage options exist, although not everyone may qualify.
