After the severe storms this summer,
That is, until he reviewed the rates with them. "You could see a rate higher than your homeowner's insurance, depending on where you live," he said.
That may change, as the
The NFIP was enacted in 1968 and now people can buy into the national plan through 60 different insurance companies or through NFIP Direct. They can also buy coverage through private insurance but the national plan is backed by the federal government.
For the first time in the history of the program, he said some policy holders will receive a decrease in their premium payment.
The new plan "is correcting long standing inequities in the current pricing scheme... Policy holders with lower value homes who have been paying more than they should will no longer bear the cost for property owners with higher value homes who have been paying less than they should."
He added, however, that any premiums that will increase in cost won't be changed until
A report from research group
Some of the biggest gaps in current premiums versus actual risk appear in the Southeast and Mid-Atlantic regions including in
Under the current plan, a home or business owner's flood insurance is based on a few factors including where the property is located on a flood-zone map, its elevation and and how often a storm occurred that should only occur 1% of the time.
As of Friday, the rate for a new policy owner also will be based on the distance to a coast, ocean, or river; the class of the river; whether the flood is from a water source or rainfall; as well as the ground elevation, first-floor height, construction and foundation type for the home or building, and a broader range of storm indicators.
For now, the new rates will only apply to new policy holders. Policies that will decrease in cost will see an adjustment when their policy renews.
"Typically when changes have been made, it takes us some time to see the impact of the new legislation," Logue said about agents like himself who sell insurance.
In a letter to
Some homeowners must carry flood insurance, including those who live in a high-risk flood area and have a government-backed mortgage, as well as those who have already received federal flood disaster aid.
"If you live in a high-risk flood area and have received federal disaster assistance – including grants from the
Some residents of
Homeowners, business owners and renters can buy flood insurance through insurance agencies that sell the NFIP program or by buying private flood insurance.
Coverage through the NFIP is normally capped at
If a person elevates their home or lives in a community that participates in
On its website,