April showers bring May flowers . . . and possibly a higher monthly payment for homes requiring flood insurance! Per Rismedia, the NFIP (National Flood Insurance Program) is $24 Billion dollars in debt, following several disastrous storms in recent years and their lingering consequences. In order to help pay for some of this debt, the organization is increasing overall rates and decreasing the number of subsidized rates. Only about 20 percent of policyholders are paying a subsidized rate, but as NFIP phases these subsidies out, all policyholders could see an annual increase in their payments.
The Purchase Agreement provides you with time to talk to your insurance agent about homeowners insurance. When having this discussion, ask the agent to verify surrounding flood plains. It might be wise to see how close your new home is to the current boundaries, as these are occassionally updated and changed by FEMA. Then, plan accordingly.
Purchasing a home in a flood plain is not neccessarily a bad investment. Some homes that require flood insurance will never be impacted by high waters. Just be knowledgeable about how this will affect you financially. If your new home will require flood insurance, work the payment into your new monthly budget, and account for an annual rate increase.
We want you to enjoy your new home, not be overwhelmed with debt. Using people you can trust - from your Real Estate Agent to your Insurance Agent - goes a long way in saving you time, money, and heart-ache. If you have questions about the Real Estate process, call your local agent, or contact Eileen O'Brien with Century21. Getting answers BEFORE you buy will lead to years of comfort and enjoyment(Eileen can be reached at firstname.lastname@example.org ~OR~ (317)445-0393)