The National Flood Insurance Program will use a new calculator when it rolls out its new rating system this fall and we can expect a major shift is needed in pricing policies. Such changes could level the playing field overall but depress home values in some areas.
Some of the biggest gaps in current premiums versus actual risk appear in the Southeast and Mid-Atlantic regions in places such as Florida, South Carolina and New Jersey. Chasms also exist in pockets of California, Texas and Washington.
As of August 24th the flood maps will change for lender and construction requirements across the State of Florida. As of that date, much of Pinellas County will see a DROP in flood rates thanks to our data-driven record of having low flood risks in many existing flood zones around the county.
While it’s true that the majority of Pinellas County won big with these changes, many parts of Florida and even some areas of Pinellas County did not get as lucky. In Pinellas County, neighborhoods like Snell Isle, Shore Acres, Redington Beach, Madeira Beach, and parts of Oldsmar will see rate jumps due to increased flood trends and losses over the years. For example, the BFE (aka the Base Flood Elevation) is being increased by 3-4 feet in Snell Isle – which will drive flood insurance rates up for many homeowners starting Aug 24th of this year.
Comparatively, many homes in the Historic Park St area of St Petersburg will have their BFE decreased by a few feet. Some Park Street residents may see their rates drop from about $4,000 per year to around $600/yr once the changes come into effect. Most changes will not be nearly as large either as an increase or a decrease.