Wednesday, August 10, 2022

Letter: Cease making Missourians overpay for flood insurance coverage | Letters to the editor

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I’m the Missouri state consultant from District 115. Relating to “Getting coated with flood insurance coverage” (March 23): For many years, Missouri communities and property house owners have been overpaying premiums to take part within the Nationwide Flood Insurance coverage Program. The issue lies with the chance evaluation device utilized by this system, which was final up to date 50 years in the past. Below the present mannequin, charges set by the Nationwide Flood Insurance coverage Program are primarily based totally on whether or not a property is inside or exterior a chosen flood hazard space and the timing of a group’s entry into this system. This hardly accounts for elements comparable to property elevation, energy of a constructing, mitigation efforts, and distance from a supply of flooding.

Fortunately, the Nationwide Flood Insurance coverage Program threat score 2.0 modifications all of that. It’ll generate annual insurance coverage charges that extra precisely mirror a property’s flood threat, resulting in larger monetary stability for this system and strengthening its means to help flood survivors.

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Additional delay of the score would equate to a whole bunch of hundreds of thousands of {dollars} of overpayments from single-family householders. With out the transition to threat score 2.0, roughly 600,000 householders would by no means obtain premium decreases and would proceed to unjustly overpay for flood insurance coverage. In Missouri alone, 29.6% of all policyholders can count on a lower in premiums.

For many years, outdated score methodology has underpriced premiums for high-risk properties and shifted the burden of accelerating charges onto older or modestly priced houses and companies like these in our small communities. It is time that properties with essentially the most threat pay their fair proportion.

Cyndi Buchheit-Courtway • Festus

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