Flood Program Rates Draw Concerns
Rate increases in the federal flood insurance program are drawing the ire of politicians on both sides of the aisle in Tallahassee. Governor Rick Scott recently sent a letter to Florida U.S. Senators Bill Nelson and Marco Rubio stating that he is “deeply troubled” by the impact of flood insurance rate increases on Florida’s economy. Governor Scott pointed to the implementation of full risk rates on homes upon their transfer, or upon lapse of existing policies, as being harmful to Florida’s real estate market. Governor Scott noted that the $16 billion paid by Floridians in flood program premiums is about four times the $3.7 billion in insured losses incurred in this state.
Meanwhile, state Senator Jeff Brandes asked Senate Banking and Insurance committee chairman David Simmons to schedule a hearing to review the impact of increased flood program rates on Florida’s economy. State Representative Dwight Dudley also has asked Florida’s Secretary of State to poll legislators regarding the possibility of a special session to pass a memorial asking Congress to enact a one-year moratorium on implementation of the increases.