Florida is home to 35% of all flood insurance policies underwritten by the federal government. The National Flood Insurance Program, part of FEMA, has pushed back its planned changes to the program. The original effective date of Oct. 1, 2020, has been moved back one year to Oct. 1, 2021. Known as the Risk Rating[…]
According to SunSentinel Florida properties make up 37 percent of flood insurance policies nationwide. Flood risk is a common concern among Central Florida home buyers and owners for a good reason, FEMA estimates that the average flood insurance policy costs about $700 per year. Policy rates in moderate-to-low risk areas are about half of the average.
So how important is flood insurance when purchasing a home?
For homes with the high-risk designation, there is a 25% chance during the course of a 30 year mortgage that the home will be flooded. High-risk homes with federally regulated or insured lender mortgages are legally required to purchase a flood insurance policy. It is highly recommended that moderate-to-low risk homes opt for flood insurance, although it is not legally required. Moderate-to-low areas claim a third of all U.S. disaster relief money every year.
What is the flood risk for a home in Central Florida?
The most likely risk scenario for a flood in Central Florida is a tropical storm or hurricane (or even a heavy rain). This is especially likely for storms that hang over the state for a few days. The ground cannot absorb the large amount of water and drainage becomes sluggish. The other scenario encountered in Central Florida is floods caused by new developments. As Metro Orlando grows, new homes and roads are built, meaning there is less ground for rain to accumulate. This type of flood might happen over a few hours.
Click here to see FEMA’s Flood Map of Central Florida. Once in the portal, select your area and click the view map on the left.
How can flood map changes affect rates? […]