Thousands of Homeowners Could See Massive Hikes to Insurance Start This Fall
According to a recent study by First Street Foundation there are hundreds of thousands of homeowners in the United States who might see drastic increases to their insurance rates in a few months from now.
They suspect that in October it could start when homeowners begin seeing a massive rise in rates. For some it's estimated that they might see rates as high as 4x what they are used to.
The study estimates that the average rate is going to need to at least quadruple for the homeowners who are living in regions that are more prone to flooding.
For many homeowners they aren't likely living in a flood prone area and they are not going to see much of a change to their rates they suspect.
But for others it could be a drastically different story, for hundreds of thousands of families. This means they will see their rates increasing thousands of dollars to match that flood risk.
Around the U.S. each year we see storms, fires, flooding etc, and it causes billions of dollars in damage. Millions of people have had their lives and homes impacted by flooding and storms in various states over the years.
More recently, now each home in the United States can be assessed for its own flood risk and given a flood risk score.
Some might not even know that they are at a higher risk than they might have been before, but their rates are going to catch up and give them a clue.
Those rate hikes that are expected to be coming eventually for homeowners will reportedly ultimately be slowly phased in, when they do arrive, by the existing policyholders.
FEMA hasn't publicly shared how the flood risk rating might overhaul premiums for homeowners yet. The calculations done in this study for example are only estimates and are not set in stone. It isn't clear what (if any) the rise in rates might be which will be linked to the FEMA flood risk rating approach.