Normally, April 1st is known for being the one day when you can pull pranks on friends and co-workers and still escape the beating that would normally follow on any other day. By merely yelling, “April Fools!”, you can escape judgment for all sorts of sins and misdeeds – all in the name of “good fun”.
Unfortunately, this April Fools Day will hold special meaning to property insurance policy holders in Florida because, as of April 1, 2015, the Homeowner Flood Insurance Affordability Act of 2014 goes into effect. As history has shown, anytime the Federal government passes a law with the word “Affordability” in the title, you know you are going to have to reach for your pocketbook. The Homeowner Flood Insurance Affordability Act was passed last year to kick the can down the road with regard to sky rocketing flood insurance premiums under the Biggert-Waters Act, but it looks like “down the road” is now staring Floridians in the face. Although the new premium increases won’t be as draconian as the $30,000 residential flood insurance premiums homeowners were facing under the Biggert-Waters Act, Floridians can still expect to see increases of approximately 18% annually until the premium charged for flood insurance coverage is “actuarially sound” (i.e., never).
But not to worry! A local congressman just introduced a bill entitled the Flood Insurance Premium Parity Act of 2015. Based on this lofty sounding title, the bill is sure to solve any and all problems and make flood insurance affordable for all in perpetuity. See – nothing to worry about.