Property Insurance About to Increase?

If you live in a ZIP code that’s close to the coast, you may be facing higher flood insurance costs in the coming years. This is due to a combination of factors, including rising sea levels, increased flood risk, and changes to federal flood insurance policies.

The effects of climate change, including rising sea levels, have made coastal areas more vulnerable to flooding. In October 2016, Hurricane Matthew caused significant flooding and damage in Florida, Georgia, South Carolina, and North Carolina, resulting in billions of dollars in insurance claims. Two years later, Hurricane Florence caused similar damage in the Carolinas.

In September of 2021, Hurricane Ida caused widespread flooding and damage in Louisiana, Mississippi, and other parts of the eastern United States. The hurricane caused an estimated $3 billion in insured losses, with many homeowners in coastal areas facing significant damage to their homes and property. Since then, there has also been hurricane Ian, costing Florida $112 billion and similar losses.

As a result of these hurricanes and other extreme weather events, federal flood insurance policies are undergoing changes that will likely lead to higher premiums for homeowners in flood-prone areas. The federal government has been subsidizing flood insurance rates for many years, but this policy is changing due to concerns about the sustainability of the program and the need to reflect the true cost of flood risk.

This is particularly concerning for homeowners in ZIP codes that are closest to the coast, as these areas are often the most vulnerable to flooding. In some cases, homeowners may find that their insurance premiums are so high that they are unable to afford coverage at all, which could put their homes and possessions at risk.

So, what can you do if you live in a ZIP code that’s close to the coast and you’re concerned about rising flood insurance costs? One option is to take steps to protect your home against flooding. This could include things like installing flood barriers, elevating your home, or making changes to your landscaping to improve drainage.

Another option is to shop around for flood insurance policies from private insurers. While federal flood insurance policies are likely to become more expensive, private insurers may be able to offer more affordable rates, particularly if you are able to demonstrate that you have taken steps to mitigate your flood risk.