In the wake of natural disasters, a pandemic, and supply shortages, higher insurance rates are everywhere. Many living in coastal areas or in flood zones can also expect to see higher rates to insure their homes under the Federal Flood Insurance Program. The Federal Emergency Management Agency (FEMA) released new rules in the spring regarding those in flood-prone areas, the first update to this program in 50 years. Instead of basing its pricing for flood insurance on just flood zones and home elevations, FEMA decided to use current technology and modeling that’s already used as a standard by the insurance industry to make its pricing more risk-based. A home’s value will also play a part in determining rates for the first time. These changes will mean big increases for some, while there will be decreases for others, effects homeowners will start seeing over the next year. One study shows the average increase could be over $7000 for homeowners with high-value coastal homes. Read more about the changes HERE.
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