Homeowners who have flood insurance that is subsidized by the National Flood Insurance Program can expect to see their rates increase as the government agency hopes to reduce a $24 billion deficit. The massive deficit was created after Hurricane Katrina and Superstorm Sandy swept through the East Coast of the United States several years ago. Under the new bill that was signed into law by President Barack Obama, as many as 1.1 million policyholders across the country would be affected. It is estimated that 14,000 Hawaii residences will see rate increases. As a point of comparison, someone who lives on an ocean front property and who is currently paying $1,200 per year for flood insurance would end up paying $3,600 per year in five years and approximately $11,000 per year in 10 years. Percentage of rate increases will depend on the particular flood zoning for an individuals property.
Source: Honolulu Star Advertiser, 3-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
