While flood insurance rates will be increasing for everyone, the largest increases will be to:
1) Secondary and rental homes
2) Commercial buildings
3) Homes with multiple losses
These types of buildings will be increasing at 20-25% per year until they reach the non-subsidized premium. Currently, the Federal government subsidizes 50% of the premium, so a current $2,600 policy premium is actually $5,200 were it not for the subsidy.
Owner occupied homes currently insured will not be subject to the 20-25% per year increase. They will see their premiums grow at rates similar to past years. However, if the home is sold to a new buyer, the premium will go directly to the non subsidized rate.
There is talk in Congress of enacting legislation to slow the premium increases, but nothing has been passed to date.
The Russell Agency is available to conduct a flood insurance presentation to Real Estate Agency sales meetings and other groups. Please contact Tim Russell CPCU, 203.255.2877.
The Russell Agency is a full service independent insurance agency serving Southport, Fairfield, Westport, Fairfield County, New Haven County and all of Connecticut.