Flood insurance rates, fees increase Wednesday
Premium hikes ranging from 15 to 18 percent for primary homeowners and 25 percent for other properties are part of a congressional act that takes effect Wednesday.
In addition to higher insurance rates, homeowners must pay a new surcharge --
The hikes will take effect whenever homeowners renew their policies, according to
The increases are required through the Biggert-Waters Flood Insurance Reform Act of 2012, which
The premium increases have held steady for non-primary homeowners.
Businesses will see premiums increase 25 percent next year.
Primary homeowners, however, will now see their premiums increase based on the age of their home, elevation and other factors, Jones said.
KILLING THE DEAL?
With rates continuing to rise in coming years, some local Realtors say they expect to see more residents lose money on older homes, if they're able to sell at all.
Neighboring, newer homes have annual costs of about
"You're going to have a lot of prospective buyers afraid to buy those homes" in flood-prone areas, Bennett said. "In many cases, the high insurance premium for flooding will kill the deal.
"(Insurance) could effectively make those homes unsellable at some point."
"I just don't see that changing," he said. "It is what it is."
WHAT YOU CAN DO
Unincorporated
Figures were not available Tuesday from the city of
There are 54,380 residential flood policies in
Jones, who owns Carolina Flood Solutions -- a firm she started to help people lower their flood-insurance payments -- urges residents in high-risk areas to obtain an elevation certificate, which determines a home's proper insurance rate.
Without a certificate,
Residents, too, can use that information to guide decisions on investments.
For example, it may cost
While the rate increases are already hurting sales of older homes, Bennett said it's too soon to tell how the market for second homes will fare.
Since receiving the latest bill, Bennett himself is considering selling his 10-year-old investment property in
His annual bill increased from about
The coming months will show whether the surcharge and premium hike deters others from making similar investments, he said.
"We're just now feeling it."
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