Many local homeowners will be seeing changes to flood insurance rates in 2015 and 2016.  The changes became effective on April 1, 2015 and will be applied to the next renewal of your flood insurance policy.

These changes are increasing rates for many homeowners in the area, but don’t be alarmed unnecessarily. We have all the details covered below.  If you have questions about these changes or how these changes will affect the value of your property, contact us at 985.502.9707 or click here to send us a message.

Changes To Flood Insurance Rates Explained

The total increase on your 2015 flood insurance renewal will include a combination of the following Surcharges, Federal Policy Fees, and Premium Increases.  The Surcharges and Federal Policy Fees are a set rate based upon the property type and use.  The Premium Increases will be dependent upon your individual policy.

Policy Surcharges and Federal Policy Fees

The following surcharges will apply to all policies, depending upon the property type and use (i.e., primary residence, rental property, second home).

Single Family Primary Residence (most common)

Nearly all flood insurance policy holders will see these increases reflected on their 2015 flood insurance renewals.  This includes both single family properties and individual condo unit owners with flood insurance coverage.

• $25 Surcharge
• $45 Federal Policy Fee

Non-Primary Residences / Multi-Family Dwellings / Non-Residential (less common)

These increases apply to all 1-4 Family Dwellings that are not 100% occupied as the owner’s primary residence. These would include rental properties, second homes, and vacation properties. For multi-family properties (2-4 units), these charges will apply, even if one of the units is the primary residence of the named insured.

• $250 Surcharge
• $45 Federal Policy Fee

Premium Increases

In addition to the fees and surcharges identified above, homeowners may also see increases in their individual premiums.  These premium increases are separate and in addition to the surcharges and Federal Policy Fees identified above.  The premium increases are not across the board and will be dependent upon your individual policy.

• The average premium will increase between 5% – 15%, with 18% being the most any individual premium may increase (with some limited exceptions).
• Surcharges and Federal Policy Fees are not considered premiums and not subject to the 18% cap.
• When the Federal Policy Fee and the Homeowners Flood Insurance Affordability Act Surcharge are included, the total amount charged to the policyholder will increase an average of 19.8%.

Will Changes To Flood Insurance Rates Impact Your Property Value?

The answer to this question will largely depend upon your specific policy and flood risk of your property.  To receive a detailed assessment on the impact of rising flood insurance rates upon your property value, simply complete the form below or contact us directly at 985.502.9707.