Homeowners are getting hit with flood insurance cost increases of up to 18 percent a year, and they face uncertainty as a

Sept. 30 deadline approaches for Congress to extend the National Flood Insurance Program or allow it to expire.

 

The subsidies — which are now being phased out — apply primarily to homes built before their communities adopted

flood maps, and to homes that were added to high-risk zones when maps were updated.

 

For low-lying homes in waterfront areas that do not receive subsidies, annual premiums of $1,800 to $7,000 are

common, but premiums can exceed $25,000, local insurance brokers said. Most mortgage lenders require flood

insurance for homes in areas at high risk of storm damage.

 

The cost increases are causing “sticker shock” for families, said Michael Raab, who works for Nassau County.

 

“We are finally paying for the risk of our homes, and it is a devastating addition to a family’s budget,” Raab said. “A lot of

 

families live month to month. . . . There are people that are honestly going to have to rethink living in their homes.”

 

 

Home prices, values can take hit

 

The high price of owning a low-lying home also could cause some buyers to think twice, said Jonathan Miller, chief

 

executive of Manhattan-based appraisal company Miller Samuel.

 

“If there’s a higher cost associated with homeownership, that tempers home price growth,” Miller said.

 

A $500 increase in flood insurance premiums causes a $10,000 decrease in home value, according to a report by

Manhattan-based Legal Services NYC.

 

A typical house with high flood premiums can sit on the market for months, said Nick Sakalis, a real estate agent with

Coldwell Banker Residential Brokerage in Syosset. “What happens when the seller needs to sell is, they start to drop the

price almost every month until they can find a buyer,” he said.

 

Mortgage lenders take flood premiums into consideration, too.

 

“Higher insurance premiums will certainly impact a borrower’s qualifying debt-to-income ratio, effectively reducing

their borrowing power in some cases,” said Michael Bocelli, a division manager at Quontic Bank in Melville. “It’s

definitely something for home buyers to consider.”

 

Read the full story here http://www.newsday.com/business/li-flood-insurance-premiums-rising-up-to-18-a-year-1.13174031

 

 

 

Like this article? Chip in $5

Leave a Reply

© 2019 Stop FEMA Now | Sitemap | Privacy Policy | Contact Us | Site by ABQ Designs

css.php

Sign up for our Email List

Enter your email and stay on top of things.

Name:

E-mail: