Fire Island Association: The Cost Of Insuring Expensive Waterfront Homes Is About To Skyrocket

Press release from Fire Island Association:

2021-09-30

New federal flood insurance rates that better reflect the real risks of climate change are coming. For some, premiums will rise sharply.

Florida’s version
of the American dream, which holds that even people of relatively
modest means can aspire to live near the water, depends on a few crucial
components: sugar white beaches, soft ocean breezes and federal flood
insurance that is heavily subsidized.

But
starting Oct. 1, communities in Florida and elsewhere around the
country will see those subsidies begin to disappear in a nationwide
experiment in trying to adapt to climate change: Forcing Americans to
pay something closer to the real cost of their flood risk, which is
rising as the planet warms.

While the
program also covers homes around the country, the pain will be most
acutely felt in coastal communities. For the first time, the new rates
will also take into account the size of a home, so that large houses by
the ocean could see an especially big jump in rates.

Federal officials say the goal is fairness — and also getting homeowners to understand the extent of the risk they face, and perhaps move to safer ground, reducing the human and financial toll of disasters.

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This press release was produced by Fire Island Association. The views expressed here are the author’s own.