The Attributes of Home Owners Flood Insurance

The National Flood Insurance Program backs flood insurance, you are more likely to be reimbursed for the expenses in full even if the President does not declare a Federal disaster.

Many parts of the Sunshine State are prone to hurricanes and as such most homeowners insurance includes cover for hurricanes. However, this does not compensate the homeowner for damages caused by the flood waters that often accompany hurricanes.

Homeowners in Florida and other parts of the country need to ensure that they have adequate flood insurance that will not only pay for the damage incurred to the structure but also the furniture and clothes. A group of lawmakers have unveiled new legislation that will delay federally mandated increases in flood insurance premiums by up to four years.

Home Prices Affected

Legislators noted that real estate prices in areas that fall in the new flood map and for homes that were built up to standard earlier but now fall foul of the new norms will benefit from the new legislation. The new law will permit home owners to transfer their low premium home flood insurance to the new purchasers if their home has not been flooded recently. Similarly, older homes that met the norms when they were constructed but are now being charged a higher premium will benefit from the delay in the hike.

The Insurance Information Institute (III.org) says that 90 percent of the claims in the U.S. are caused by flood damage and over 11 million homes are in the new flood zones. However, only a quarter of these homes have flood insurance.

Mortgages

Flood insurance is needed to obtain federally regulated mortgages. Additionally, because the National Flood Insurance Program backs flood insurance, you are more likely to be reimbursed for the expenses in full even if the President does not declare a Federal disaster. Flood insurance will protect your money whether your home is flooded by natural causes or leaking or broken pipes, ensuring that you can soon get back on your feet financially.

Outstanding News for New Owners

With more than 360,000 owner occupied homes in Miami Dade County that are mortgaged or have a loan on them, it is likely that these homes already have flood insurance. This makes them ideal for purchase as the new owner can continue to enjoy the subsidized premium.

In recent times, the real estate market in Miami has been hit by a slowing economy as well as the home insurance problems. Miami though is not doing nearly as bad as New York, Chicago, or Detroit. There is not any state income tax in Florida which is why this state has not felt the ongoing recession like some other states.

Furthermore, rising premiums for basic home insurance, hurricane insurance, and the expected increase in flood insurance premiums had made many potential home buyers hesitate to complete the deal. With lawmakers now sending a clear signal that flood insurance premium will not be raised gradually to reflect the true risk based on the new flood maps, the real estate market is likely to pick up.

Fully Protected Homes

Whether you are looking to sell your home in Miami or purchase one in the area, you will be able to benefit from the delay in the hike in flood insurance premium. This gradual increase will help home owners adjust to the premium costs and make sure that their homes are protected adequately.