Homeowners in Jersey Shore towns hit hard by Hurricane Sandy want to know why their premiums for flood insurance plans are going up when they’re still working out claims for damage sustained from the historic storm more than two years ago.
As part of the Homeowners Flood Insurance Affordability Act, new rates and policies go into effect starting today. It means more money will be coming out of policyholders’ pockets. A primary residence, which includes single-family and individual condo units, will see a surcharge of $25. Non-primary residences, multi-family homes and non-residential buildings will be charged $250. According to FEMA, which oversees the program, the surcharges go into effect when policies are up for renewal.
The president of the Insurance Council of New Jersey explained that the surcharges will go toward the $24 billion debt of the National Flood Insurance Program, which had been subsidizing the insurance premiums. But some homeowners are complaining about being billed for the surcharges while their Sandy-related damages claims still haven’t been settled.
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