Ronald Kammer Discusses Increase of Flood Insurance Premiums in Anticipation of FEMA Policy Change
Hinshaw's Ronald Kammer—co-partner in charge of the Miami office and the co-chair of Hinshaw's national Insurance Services Group—was quoted in a Miami Herald article titled "Your flood insurance premium is going up again, and that's only the beginning." The article discusses increases in coastal flood insurance premiums, which, due to an anticipated policy change by the Federal Emergency Management Agency (FEMA), are expected to climb further. FEMA recently confirmed to the Miami Herald that it is looking into switching to risk-based pricing in 2020, which would end the subsidies most coastal communities enjoy on their flood insurance premiums.
According to Kammer, if sea level rise continues to the point where flooding becomes expected or commonplace, one of two things will happen. "One, the cost of insurance will become very expensive and that may have an impact on future development," he said. "Two, you could have a situation where certain insurers no longer have the risk appetite to continue insuring an area that is prone to systemic flooding."
Read "Your flood insurance premium is going up again, and that's only the beginning" on the Miami Herald website