If your basement floods, your policy could replace your walls, boiler and hot-water heater, but not the cost of replacing any personal possessions in the basement, like sofas, televisions and clothes. Residential policies max out at $250,000 for the building and $100,000 for contents. The national program’s coverage is reliable, but it’s limited. Lawmakers from coastal states, including New York and New Jersey, have urged Congress to block the new rates. Existing policyholders will see rates rise beginning in April. While 23 percent of policy holders will see their rates drop under the changes, 66 percent could see their rates rise by as much as $120 a year, and 4 percent could see their rates rise by $240 a year. But a new rating system, called Risk Rating 2.0, which FEMA rolled out this month, takes into account a home’s location, its size and its overall flood risk. Currently, the average annual premium is $734, according to ValuePenguin. You can buy one of these policies through a local insurance broker or get referred to one by calling the national program at (888) 379-9531.Īny renter, homeowner or business owner in one of the 23,000 participating communities is eligible for a policy, with rates set by FEMA. The National Flood Insurance ProgramĪbout 75 percent of all flood insurance policies are administered by FEMA’s National Flood Insurance Program. “The most marginalized people are the ones who are going to be most affected,” he added, because they are more likely to live in areas more vulnerable to the effects of climate change, frequently receive a smaller share of federal disaster aid, and are less likely to be able to afford the high cost of insurance.
0 Comments
Leave a Reply. |