Rising flood insurance rates to affect 21,800 Hillsborough homes [Tampa Tribune, Fla.]
By Michael Sasso, Tampa Tribune, Fla. | |
McClatchy-Tribune Information Services |
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Not surprisingly, the people who were going to buy his home recently backed out after hearing of the new insurance premiums.
"The people who were buying were military folks, people who wanted to live near base," McKenna said. "And there's no way they could afford it, no way."
McKenna is among an estimated 21,800 owners of single-family residences in
Generally, those people live in certain flood zones and have older homes built before the introduction of new flood insurance rate maps, implemented in 1980 in
By Tuesday, some of those 21,800 property owners will see their rates jump by hundreds or even thousands of dollars per year as the federal government cuts the insurance rate subsidies it has provided for decades.
For example,
The housing industry is pushing
"The biggest problem we have in the market right now is uncertainty," Beggins said.
Housing industry expert say some homeowners will be forced to sell their homes, either because they can't afford the new premiums or because it won't make sense to pay sky-high premiums on low-priced houses.
"I don't know the (homes') elevation, but I can guarantee they are real low," Hubbard said. "We would struggle to try to keep it."
What may surprise homeowners is how much their rates will rise even if they are miles from
Of the 21,800 properties that currently are eligible for federal rate subsidies, fewer than 3,000 actually front the bay, according to the Hillsborough County Property Appraiser's Office. To be sure, the biggest concentrations of affected homes are clustered near the coast in places such as south
But there are scattered homes in interior places such as Brandon and
It's important that homeowners in certain flood zones check with their insurance carriers about any increases because the new law has complicated guidelines that treat homeowners differently based on their unique circumstances.
For example, thousands of people who have flood insurance policies that predate the new Biggert-Waters Act will not be affected by Tuesday's rate increases as long as they stay in their homes, said
However, business properties that currently enjoy a federal rate subsidy will see annual 25-percent rate increases until their premiums reflect the true flood risk. Property owners with a history of flood losses also will see 25-percent annual increases starting next week.
Most affected will be new homeowners who buy houses after the new rates take effect. These people will immediately see rates reflecting the full risk of flood damage -- with no phase-in period over time.
This is what concerns people such as McKenna, who owns the home near MacDill.
At the moment, he's renting out the house while he lives in a separate home in
He's not sure how he'll sell the MacDill-area home because any new owner would face sky-high premiums and would balk at the insurance cost.
But, he won't be able to rent out the home, either. While primary residences with policies that predate the new law will continue to enjoy rate subsidies, rental properties and second homes will see big rate increases, he said.
"I feel like I'm getting stuck with this house, and I don't know what to do about it," McKenna said.
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