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Governor fears flood insurance spike

Reported by: Jamie Smith
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Updated: 9/18/2013 8:04 pm
JACKSONVILLE, Fla. -- On the the same day heavy rains were falling in Northeast Florida, a letter from Florida Gov. Rick Scott fell into the mailboxes of both Florida senators on Capitol Hill.

In a letter dated Tuesday, Scott urged Sen. Marco Rubio and Sen. Bill Nelson to staunch the Flood Insurance Reform Act.

Almost a million homeowners subsidized by the National Flood Insurance Program will face substantial rate increases under the new law.

Scott wrote, "I urge you to adjust the NFIP’s coming rate hikes on Florida’s families."

The Federal Emergency Management Agency claims 81 percent of homeowners with subsidized federal flood insurance would see their rates go down under the new law.

Only 5 percent will see increase in rates and they would be significant spikes. Another 10 percent would have their rates raised only after the next time the home is sold. Scott wrote,

"Under current law, the sale of any property, or lapse of its policy, removes the rate 'glide path' and forces the new or current owner to immediately pay full-risk rates. In cases where new maps move a property into a flood zone, homeowners may find it impossible to sell their properties to a new owner who will be shocked with the massive premium increases required to secure a mortgage. This unfair consequence could devastate parts of Florida’s real estate market, stymie Florida’s economic recovery, and diminish the state’s tax base."
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