Many Consumers Paying For Flood Risk That Doesn't Exist

Author:	Lucas Jones
Source:	Homes Discovered
Date:	March 24, 2006

Many people in South Florida purchase flood insurance as a requirement for mortgages.  Over 900,000 policies are purchased at a cost of $252 million every year.  Many areas evaluated as flood hazard areas are wrong which costs Florida residents a needless $226 million per year on flood insurance.  Some say that 90% of the Special Flood Hazard Areas (SFHA) are inaccurate. Some home owners should perform a flood risk analysis to see how their home's flood risk compares to FEMA's risk assessment of the SFHA where your home is located.  This would help to determine how much flood insurance you really need instead of relying on the incorrect designations by FEMA and wasting money on flood insurance dictated by your mortgage company.  Correcting inaccurate SFHA designations can add money back into the economy every year. Many flood insurance requirements should not exist.  False SFHA designations cost South Florida residents over $252 million a year on 900,000 flood insurance policies. The vast majority of South Florida homes are built responsibly enough to protect against catastrophic floods and should not be in the SFHA.  Obtaining a flood zone correction makes you a more educated flood insurance policy holder and can save you significant amounts of money that can be spent on more important things.

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