Florida Condos Face Flood Insurance Rate Hikes
The National Flood Insurance Program (NFIP) was extended through September of 2013 as part of recent legislation passed by Congress and signed into law by President Obama on June 29, 2012. South Florida condo associations are among many flood insurance policyholders who are likely to see higher premiums.
The federal flood program, which was set to expire at the end of July 2012, is $18 billion in debt. Several rate increases are authorized in the new law in an effort to restore solvency, including:
- Annual allowable premiums may jump from 10 percent to 20 percent a year. Under the maximum allowable annual increase, flood insurance rates could conceivably double in as little as four years.
- Owners of currently subsidized homes considered to be high risk, such as vacation homes or homes with repeated claims, may see required annual rate increases of 25 percent. South Florida coastal areas are particularly at risk.
- Deductibles will be set at a minimum of $1,000 or $2,000, depending on the property.
Florida homeowners and condominium owners make up a disproportionate share of the NFIP program. More than a third of the flood insurance program’s 5.6 million policies are in Florida, according to the Sun-Sentinel, including about 930,000 policies in Broward, Palm Beach and Miami-Dade counties.
Statewide, 80 percent of Florida’s 15 million residents live or work near the coast, according to the Federal Emergency Management Association (FEMA). Many others live near the state’s rivers or other inland floodplains. That means most Florida residents face the dangers of flooding, according to state and federal officials.
Fort Lauderdale Condominium Litigation Attorney
This update on news affecting South Florida condominium owners is offered as a service of Fort Lauderdale condo attorney Marcy Resnik. Contact her to discuss legal questions you might have in regard to your condominium association. You can reach Ms. Resnik online or call her at 954-321-0176.