Delaware Business Insurance Update from CNC Insurance Associates Inc."New Flood Insurance Rates Causing Sticker Shock" 1-5-14

For many who have lived near flood prone areas and have flood insurance, get ready, your costs are going up. Due to the recently passed Biggert-Waters flood reform act, rates are going to be adjusted to more accurately reflect the risk of flood. For many years flood insurance has been under priced. The Federal program has been subsidizing the rates for years which has given people the affordability to build in coastal areas and have coverage. However, as the program struggles financially, congress was forced to pass legislation to make rates more accurate. Unfortunately for many flood policy holders they are having sticker shock as rates have gone up significantly. Will the increase in rates slow down the residential growth in coastal areas? It might. If home owners cannot afford the protection that flood insurance gives them, then they will be less likely to build homes in areas that are prone to flood. Stay tuned to see how this plays out. Until next time be careful out there and know your risks.
G. Kevin Nemith- President
CNC Insurance Associates Inc. and the Small Business Insurance Center
Serving DE, MD, PA, NJ, & VA
www.cncinsurance.com
www.bizinsurancetv.org

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