![]() ![]() But that goes up to nearly $32.2 billion in 30 years.įEMA is expected to raise rates for flood insurance on Oct. The total expected loss from flooding this year is $20 billion. SPONSORED: Up to 50% off at Columbia SportswearĬosts would vary once other factors are thrown into the mix.Īnd the prices would go up as climate change increases costs and makes flooding more likely, according to the report. Those inside an SFHA would face premium increases of 4.2 times, costing $7,895 a year. The foundation estimates that under the current system, flood insurance costs would need to increase by 5.2 times, which would bring annual premiums up to about $2,484 a year. About 2.7 million of the properties identified by First Street are outside of an SFHA. The foundation calculated annual estimated losses over a 30-year-period to determine what homeowners should be paying for flood insurance. "And the reason for that is because FEMA does a zone-based approach to flood risk." "The rates are really low for some properties that have substantial risk," Eby told in a recent interview. That means the cost of flood insurance for a $300,000 home could be the same as for a million-dollar home. The rates don't take into account a home's value, estimated cost of damages in the event of a flood and other factors, according to Matthew Eby, founder and executive director of First Street. Under current FEMA rules, flood insurance rates are based mostly on whether or not a property is within a designated Special Flood Hazard Area, which requires flood insurance if a homeowner has a federally backed mortgage. (MORE: High-Impact Severe Thunderstorm Warnings Will Have a New Look This Spring ) If the First Street data is any indication, that could mean rates more than five times higher than what they currently are.įirst Street, a nonprofit research and technology group, identified 4.3 million residential properties as having substantial flood risk that would result in damage and financial losses. FEMA says the new premiums will be more in line with real-life costs. The report comes at the same time the Federal Emergency Management Agency is working to revise premiums for the National Flood Insurance Program. would pay considerably more in federal subsidized flood insurance if rates accurately reflected the risk, according to a new report from research group First Street Foundation. ![]() Hundreds of thousands of homeowners across the U.S. ![]()
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