Tuesday, October 1, 2013

New Flood Program Has Wide Impact on Real Estate Market and Consumers

G’ Day Old Friends and New Friends

In July 2012 a Flood Insurance Reform Act was signed into law that had wide implications for all homeowners living on or near water. The public was not aware of the impact of the changes until this year when parts of the law became effective. The change to the Federal flood insurance program will potentially negatively impact homeowners living in the state of Florida, and in particular, in Pinellas County. Homeowners across the state of Florida could see their premiums increase by 25%. People who buy a home that is affected by the changes will pay the high rates of a full risk which could be as much as 10 times what the previous owner paid.  As an example, a home was purchased inland on St. Pete Beach for $200,000 and the annual flood insurance premium went from $1,339 to $8,859. In September 2013, Jacob Holhouse, Vice President of Holehouse Insurance made a presentation to the RE-MAX Preferred realtors at the Treasure Island Yacht Club explaining the various sections of the law. In one example he explained Section 100207 regarding current and future construction. He showcased a home in Boca Ciega Isle that was built in 2003. The current grandfathered Base elevation is 11' and the top of the bottom floor is 11'. The current flood rate is $1142.00. The new base elevation is 12' and the new top of bottom floor elevation is 10.081. This means that the home is now 2' below the base flood elevation. The new Flood insurance premium would be $5,600.
 This law affects many states across the nation. The YouTube video below gives an excellent synopsis of the impact of the law:
If you live in Florida, you should be very concerned about what is going to happen when this law goes into effect. Many middle-class homeowners will not be able to afford to pay for their increased flood insurance and everyone's home values will be affected. Here is a link to the flood zone maps from the Federal Flood site:
 FEMA Flood Zone Map Service Center
 Below are a couple of links from the local Tampa Bay Times that further discusses the impact of the law.

Two things you can do right now--call the three senators for our area to voice your concern. They are: Bill Young (202) 225-5961; Bill Nelson (202) 224-5274; and Marco Rubio (202) 224-3041.You can also click the link to the Petition site and let your voice be heard. We also have word that the Governor's office would like to hear from anyone that will be severely impacted by the new flood regulations. If you or one of your Customers has a story that they would like to relate to the Governor's office, please contact Cody Vildostegui (Executive Office of the Governor-Governor's Regional Representative) at (941) 840-2759.

I sum up the issue with an optimistic note that the resilient American people will find ways and continue to live along the rivers and beaches of our nation that they love. The YouTube video below carries a few of my thoughts.

The real estate market is very optimistic on the beaches with extremely low inventory. Check out a few of my beach websites (www.wideopenwater.comwww.stpetebeach.info, www.bellevistahomes.info, www.mythreepalmspoint.com ) and my main website: www.passagrillehomes.com. On the mainland, check out my new websites: www.myhighanddryhome.com, www.gulfporthomes.info, and several homes at www.harshawhomes.com

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