Homeowners insurance is on the way up, and weather is to blame BY LEW SICHELMAN ANDREWS MCMEEL SYNDICATION JANUARY 24, 2022

Please call Lee from USAsurance Powered by WeInsure & Calle Financial. 954-270-7966 or 833-USAssure at the office. My email is lee@myUSAssurance.com . I am Your Insurance Consultant about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance, Mortgage protection, Financial Products, Business & Commercial Policies, & Group Products for business owners to give Employees benefits at no cost to the employer. My email is lee@myUSAssurance.com

The cost of homeowners insurance is on the rise, and not just because property values went up — almost 20% across the board — during last year’s homebuying frenzy. How high insurance costs may go is anybody’s guess at this time. But the Federal Emergency Management Agency is now operating under a new flood insurance rate structure that changes how it looks at risk. Furthermore, the growing number of natural disasters is forcing insurers to reevaluate their risk, with the end result almost assuredly being higher premiums. Weather is even starting to inform lending decisions, with the distinct possibility that lenders will charge more for loans in high-risk areas — or not write them at all. TOP VIDEOS × Weather events always are a threat. But during last year’s first nine months alone, the National Centers for Environmental Information counted a record 18 major storms, each with losses exceeding $1 billion. Such events are why, back in 1968, lawmakers created the National Flood Insurance Program to protect property owners from flood losses. The NFIP also protects taxpayers who fund the program by reducing Uncle Sam’s exposure. But almost annually, the NFIP well runs dry and requires additional appropriations from Congress, which, after years of inaction, has yet to reconstitute the program so it remains solvent. $2 for 2 months Subscribe for unlimited access to our website, app, eEdition and more CLAIM OFFER Speaking of dry, as of Dec. 1, the NCEI also says moderate to exceptional drought conditions cover nearly half the country. So more disasters unrelated to flooding are in the offing, too. To bolster its balance sheet, FEMA, which oversees the flood insurance program, has switched gears. Instead of rating risk solely on whether a house is located in a flood zone or not, the new formula looks at a variety of factors, including distance to a flood source, the severity and frequency of flooding, and property characteristics such as the cost to rebuild the property in the event of damage. The result: Some 3.3 million homeowners who currently have coverage will pay more, according to a study from Porch, a provider of software and services to several home service industries. The typical NFIP premium is $734 annually. FEMA predicts that 77% of those with flood insurance will see a price increase — a hike of about $88 a year for most, according to Porch’s calculations, but some by as much as $240 per year — with the remainder enjoying a lower premium. For those hit hardest, the increase will be spread over a few years. Granted, this only impacts owners who reside within a specified flood zone. But since floods can happen anywhere, anytime and for many reasons, it is a good idea to obtain coverage no matter where you live. RE|source Miami newsletter News, deals and trends for the Miami-area real estate industry.

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