Saturday, May 13, 2023

How Much is Too Much?

I was reading an article in the Tampa Bay Times about the startling new flood insurance increases and was looking at their posted chart (left) when I noticed the zip code at the top of the chart, 32931. What is this, surely a typo or a mistake? 
[Click the chart for a larger image.]

The new rates that were announced this week put Cocoa Beach in the number one position as getting the highest increase of any zip code in Florida. Those with existing flood policies have a little breathing room as premium increases are capped at 18% per year for them but those buying a new flood policy will see the full rate at purchase. This new Risk Rating 2.0 as FEMA calls it went into effect in April and the intent is to price policies based on actual risk. Many Floridians have gotten away with unrealistically low flood premiums in the past but that era has ended. 

The reported increase for new national flood policies for affected properties in Cocoa Beach is 761%. Flood policies in Cocoa Beach that were less than $1000 before this year will now cost over $6000 a year on average. Note that flood insurance is typically only required by lenders for homes that are in an at-risk zone, which is a minority of homes in Cocoa Beach. Those looking to buy a home here need to check for flood zone status of the properties they're considering and to include the cost of flood coverage if they're buying in a flood zone. Note that these increases are for federal flood insurance only and don't affect regular homeowners and wind coverage rates which are set by the insurance companies. Properties in at risk zones will typically be required to carry flood coverage by their mortgage holders as are those with homeowners' policies from Citizens which now requires all policy holders to also have flood coverage.

You can search for flood zone status for specific addresses in Brevard County at the County's Flood Map below.

Current Effective Brevard County Flood Zone Map

A good summary from the Tampa Bay Times here who also posted the chart above.

"Experience is making the same mistake over and over again, only with greater confidence." _unknown