Rick Scott Demands President Obama Fix Flood Insurance Rate Hikes

Submitted by Anonymous on October 1, 2013 - 10:53am

In the midst of a federal government shutdown, Gov. Rick Scott demanded President Barack Obama fix theNational Flood Insurance Program (NFIP) rate hike, calling the rate hike "unfair," saying it could ultimately hurt Florida's real estate market anddisproportionatelyaffect Florida families.

We are calling on President Obama to take immediate action to prevent these flood insurance rate hikes on Floridas families, and families across the state," said Scott in a press release Tuesday. "This is unfair and could devastate the Tampa Bay areas real estate market. The buck ultimately stops with the president. The time for leadership is now.

According to the Miami Herald, more than 268,000 Florida homeowners will face rising flood insurance rates due to federal inaction caused by the government shutdown.

Under the2012 Biggert-Waters Flood Insurance Reform Act,13 percent of the 2 million homeowners who carry flood insurance in Florida will be affected by the rate increase. Homeownerswill see rates rise 25 percent upon renewal until they decide to sell their homes. The new buyer will have to then pay the full cost of that insurance -- in some cases as much as 3,000 percent more than current rates -- in order to reflect the true flood risk of their property.

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