According to an article on floridapolitics.com St. Petersburg and Pinellas County officials fear “…flood insurance rates will price people out of their homes.”
Key takeaways from the article are that the homes most affected are the lower value properties. Officials have the same concerns that FIRM has expressed that the cost of flood insurance will drive some homebuyers out of the market or worse, to lose their homes. The methodology also doesn’t seem to take into account the efforts communities have made towards resiliency.
According to the article Risk Rating 2.0 is creating an “investor-driven market.”
“Cash buyers don’t have to purchase flood insurance. And if it’s not affordable, they won’t pick it up.” Which also means that the new rating system is not helping to pay down the NFIP debt if the only people who can afford to buy property can by-pass the flood insurance requirement.
A database analysis conducted by FIRM since the September 1st software release, shows Monroe County flood policy owners could expect increases averaging $3,200 annually. FIRM’s rate analysis is thousands of dollars higher than FEMA’s projected increases and contradicts them sharply. FEMA has said rates should increase about $240 annually for almost 93 percent of Monroe County policy holders.
FIRM is reaching out to coastal communities to share our concerns. We’ll be launching a new page on our website that will allow agents from anywhere in the country to contribute properties to our database.
If you would like to submit your property, please contact FIRM to find out how you can help.