HOUSTON (CW39) Around 86% of Texas homeowners will pay more for flood insurance according to LendingTree’s analysis (through the company’s research site ValuePenguin.com) of how FEMA’s National Flood Insurance Program new flood insurance rating procedures will impact flood insurance premiums.
Texas flood insurance in comparison
Texas has the 2nd highest proportion of homeowners impacted by this rule – behind Hawaii (87%). More than 10,000 Texas Homeowners will see the steepest increase in flood insurance premiums- approximately 3% of Texas homeowners will have to pay over $240 more for flood insurance under the new rules according to the group’s research.
Flood insurance premium decrease
Some lucky homeowners will see their flood insurance premiums decrease. While the majority of Texas homeowners will see increases in their flood insurance premiums, 14% of Texas homeowners will see their flood insurance premiums drop under FEMA’s new rules.
FEMA flood insurance assistance
FEMA’s rate changes promise to set right the problem of policyholders paying rates that don’t reflect the true risk they face, but rate increases will be moderate. Despite the fact that so many Texas homeowners will need to pay more for flood insurance after Risk Rating 2.0 goes into effect, existing limits on annual rate increases will still be in effect. This means that most homes won’t experience year-over-year price hikes that are more than 18%.
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