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The Flood Insurance Conundrum

In Florida, Insurance law, Insurance News, Real Estate on October 11, 2013 at 1:32

The Tampa Bay Times, formerly the St. Petersburg Times, authored a well-thought out editorial column addressing issues behind the debt-ridden flood insurance program.  Last year, the Biggert-Waters Act was passed.  The Act was created to acknowledge and focus on flood insurance and the subsidies that were in place for properties in the ‘70s, the Act may have other effects that will impact real estate in general.  The Times suggests that coastal homes will be dramatically devalued and also suggests that this is a devastating way to address the issue.

Pinellas County is the national leader with more than 50,000 policies that are subsidized.  Miami-Dade is right behind with more than 47,000.  Not every one of these homes is the domain of the super-wealthy.  The removal of the subsidies will hurt many people who have own modest homes that are statistically in a flood zone.

The Times urges congress to consider a reasonable policy, and to rethink the Biggert-Waters Act, which, it says “threatens to destroy Florida’s real estate market.”

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