Chad T. Wilson – News
June 16, 2023
Updated: June 13, 2023 10:15 a.m.
Texans are being stung by double-digit increases in flood insurance rates as hurricane season begins.
You may have recently received a notification outlining the additional costs associated with your flood insurance. According to insurance experts, the bulk of policyholders would be impacted by this rise. The Federal Emergency Management Agency declared a modification to have charges reassessed a few years ago. Since then, the cost of almost everything has increased.
That has worsened the problem. According to projections, 80% of Texans would pay upwards of $10 more per month or roughly $100 more annually when FEMA made revisions.
As opposed to what FEMA predicted, the Insurance Council of Texas claims that the majority of Texans are paying an additional $15 per month. Leaders claim that inflation is to blame. It has become necessary to raise insurance premiums in tandem with rising home prices.
The price you pay is affected by three factors, according to FEMA. Your proximity to a source of flooding, the frequency of your floods, and the expense of rebuilding your house all factor into this decision. Insurance industry representatives claimed that FEMA made the modifications because the previous method of calculating premiums was ineffective.
According to Rich Johnson, a spokesman for the Insurance Council of Texas, “In the past, they were actually paying out more in claims than they were getting in premiums, and that’s just not a way to do business.”
Maybe you don’t have flood insurance if you didn’t receive a notice in the mail. The homeowner’s insurance you have is not included in this. Although it is hurricane season, you won’t immediately get a response if you call your provider. 30 days are needed. This is why it’s critical to make that decision right away.