The Federal Emergency Management Agency announced this week that flood insurance premiums through the National Flood Insurance Program would increase by about eight percent nationally.
Some in the insurance industry say the private market could provide savings for Floridians.
A study by Millman actuarial reported that 77 percent of Floridians could save money by purchasing flood insurance through the private market rather than NFIP.
“Now that there are alterative markets out there, it’s not always what it was. Given a little competition sometimes…they offer a little bit enhanced coverage,” said Kagen Cooksley, of Regency Insurance Group in Fort Myers.
Cooksley’s company writes policies for multiple insurance companies and said it doesn’t hurt to shop your flood insurance rate on the private market.
He said people in low-risk flood areas would probably see the most savings by switching from an NFIP plan.
He added that part-time residents could see the biggest savings because private market flood insurance does not charge a $250 surcharge like NFIP plans.
Cooksley also said that any residents that live here at least six months can ask to have that surcharge removed from their premium.
Cooksley added that homeowners should first call their lender to make sure they are eligible to switch to a private market flood insurance plan.