Future Flood Insurance Premiums Could Make Living at the Jersey Shore Much More Expensive

Even if Sandy never landed on shore in New Jersey, flood insurance premiums were due to rise under a new law that aims to remove the federal subsidies for flood insurance. The new law, the Biggert-Waters Flood Insurance Reform Act of 2012, had flood insurance rates rising at a relatively modest rate over time before the advisory base flood elevations came out. One effect of the
new legislation: rates for certain secondary homes in high-risk areas will increase 25 percent per year over the next four years starting this year.  Banks require mortgaged homes to have flood insurance for all zones except the lowest risk X Zone so even if people own homes outright, are not required to elevate their homes and decide against buying flood insurance, the question of high flood insurance premiums will rear its head for potential buyers.

Asbury Park Press February 11, 2013