A recent report revealed that people in lower-income areas are most likely to drop their flood insurance coverage. In some cases, coverage decreased by as much as 60% in these zip codes.
Experts explained that rising flood insurance premiums are particularly challenging for households with tighter budgets.
For some homeowners in Cape Coral, like Darian Jorden, the rising costs of flood insurance forced him to move from Southeast Cape to Northwest Cape.
“After moving here a couple years ago, flood insurance every year just increased, increased — and when we got the new policy renewal, it was like a 40% increase,” said Jorden.
The report also indicated that premium costs are still rising. Many have not yet reached full risk-based pricing, and researchers expect more drop-offs in coverage.
Insurance agent Elizabeth Rehak-Cook shared her perspective on who is being impacted the most.
“I think definitely fixed income. Are feeling it the hardest,” said Rehak-Cook. “It’s also people, like I said, new home buyers that are already putting out so much money that extra, whatever amount it is, is just, it’s, it’s hitting them hard.”
As flood insurance premiums continue to rise, many in lower-income areas are left grappling with tough decisions about maintaining their coverage.
The city of Cape Coral’s website offers tools to help residents better understand their flood insurance.