Maryland Flood Insurance Rates on the Rise

 In Baltimore Homeowners Insurance, Baltimore Maryland Insurance Agency, Flood Insurance, Insurance Quotes, Steve Luray

flooded houseThere is a great article in the Sunday Edition of the February 9, 2014 Baltimore Sun about why Maryland Flood insurance rates are on the rise. It goes on to discuss that many people get a “subsidy” on their flood insurance premiums from the federal government. It’s estimated that 20% of all Maryland flood policies get this subsidy. As I have written before, as a result of the 2012 federal law to overhaul the Flood Insurance program, rates have been rising steadily the last few years. The FEMA maps have been redone and suddenly, people who were NOT in a flood zone are suddenly finding they are now in one. Once your mortgage company finds out about it, they immediately force place an insurance policy on your property and raise your mortgage until you go get your own policy.

Here is the problem, the policy the bank buys protects itself for the value of your loan. The policy does NOT protect you, the property owner, in any way. The rate is also very very high as its usually one flat rate for everybody. We have saved our clients a LOT of money by getting them their own individual policy that covers their house for replacement Cost as well as their personal belongings. We take into account the elevation which often entitles the property owner to significant discounts.  And we insure a lot of properties in the Baltimore area for Flood Insurance protection. It’s better to get a less expensive policy that covers both you and the bank instead of one that just covers the bank. Contact us at Luray & Associates, Inc. for a flood insurance quote today.

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