Regulators Weigh Insurance Rate Hikes; Flood Insurance Policies Purchased After Hurricane Irma Expiring This Year

State regulators on Tuesday delved into potential large increases in property-insurance rates for customers of First Community Insurance Co.

The Office of Insurance Regulation held a public hearing on a proposal that would lead to an average 24.5 percent rate increase statewide, though actual increases would vary, depending on factors such as locations of properties and types of policies.

Company officials said during the hearing that the proposed increases stem, at least in part, from higher costs of reinsurance, which is coverage that insurers buy to help pay for such things as hurricane damage.

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Following the devastating disasters and hurricane season of 2017, FEMA purchased three-year flood insurance policies for thousands of disaster survivors whose homes were flooded. Those policies are set to expire this year, and survivors need to purchase a new flood insurance policy, or obtain other flood insurance, in order to remain eligible for future FEMA assistance.

Part of the eligibility of receiving financial assistance after a flood is that a homeowner or renter must obtain and maintain flood insurance to ensure that there is no lapse in coverage. If a property affected by a flood is sold, the new owners are required to have flood insurance for the property as well.

Participants must purchase a flood insurance policy or they will be ineligible to receive most forms of assistance in subsequent disasters.

In Florida there are more than 2,500 policies expiring this year from Hurricane Irma.

Additionally, flood insurance will pay claims regardless of whether there is a major disaster declaration. Flood insurance claims can be paid for such events as flash flooding, storm sewer backup, storm surge, or tropical systems.

• To find an insurance carrier or agent, visit FloodSmart.gov, or call FEMA NFIP Direct toll-free, (800) 638-6620, option 2.