The State Urges Residents to get Flood Insurance

  The National Oceanic and Atmospheric Administration (NOAA) is expecting another active weather season, calling for 13-20 named storms, 7-11 of which are expected to become hurricanes, including 3-6 major hurricanes. Yet according to The State of  Rhode Island   Emergency Management Agency (RIEMA), less than 4% of the state’s 500,000 homes and business have flood insurance. RIEMA is encouraging more homeowners to get protection. Since 1968, the subsidized national flood insurance program has only charged about 45% of the actual cost to policyholders. Due to increased storm activity in recent years, premiums have fallen short of expenses, creating an estimated $30 billion deficit. Beginning in 2014, rates will climb 20% percent and increase annually for the next four years. This Week’s Real Estate Insight: Be proactive this hurricane season, a standard homeowners policy doesn't include flood insurance and it takes 30 days for a policy to go into effect. Federal flood insurance   is available through local   agents and the rates are the same regardless of the agent. The average annual premium is $1,200 for a building in a flood zone and $125 for buildings in low-risk areas. Coastal homes have higher premiums, for example, $250,000 worth of coverage for a building and contents costs $7,137 a year in a high-risk area. Renters can also get insured for about $125 a year.