TAMPA, Fla. — Last week, FEMA made a policy change to it's National Flood Insurance Program that could make affording flood insurance easier for many Floridians.
The NFIP is providing a new option for homeowners to buy and pay for flood insurance through monthly installments, instead of paying the annual premium up front in one lump sum.
"Traditionally, these premiums were paid solely on an annual basis, but FEMA is in the process of allowing NFIP policyholders the choice to pay their annual flood insurance premiums via monthly installments," according to the November 4th FEMA press release.
It comes at a time when many homeowners in Florida were flooded out this hurricane season in both Hurricane Debby and Hurricane Helene.
It's six weeks after Hurricane Helene and Ken Kidd, 72, retired veteran from the New Jersey National Guard, is still drying out his Belmar Shores home.
"This was my world," he said in tears. He said there isn't enough insurance money to rebuild. His only option to is to sell it as is.
"I have no choice," he said. "At $25,000 dollars they aren't going to put all this together."
He only bought a $25,000 insurance policy through the NFIP because he was required to after taking out a line of credit. On a fixed income, he paid the bare minimum of $400 dollars up front.
"We've never flooded as long as I've been here. We never had an issue," Kidd said.
The expense of adding a flood insurance policy in Florida is not an easy one for homeowners, in a state where property insurance rates are some of the highest in the country. Which could be the reason for the change by FEMA's National Flood Insurance Program, as explained by Jake Holehouse, CEO of HH Insurance Group in St. Pete.
"For so many of us, we don't have the $500 or $1,000 to pay up front. And now, with FEMA allowing monthly payments now, when it's $50 or $100 up front and that much per month, I think it's going to make it a lot easier from an affordability standpoint," he said.
The new NFIP monthly installments will kick in January of 2025.
FEMA put together an FAQ page for any questions and for more information here.
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