Flood Insurance Agency Texas warns consumers to pay for flooding
US insurance agency CARACAS (Reuters) – The flood insurance company that handles the US’s most expensive flood insurance policy has warned that consumers are being urged to pay a hefty premium to avoid flood damage.
The flood insurance business, which covers $1.6 trillion in annual claims, has warned consumers to expect a hefty hike to their insurance premiums to offset any potential premium increases.
Flood insurance rates will be $4,000 to $7,000 per household for a two-year policy, said Insurance Director James Hargreaves.
This would make the premiums more than $25,000 for the average household, Hargresons office told Reuters.
The company also said the rate hike is the first ever for an insurer that has handled flood insurance for over 20 years.
The flood insurer said in the statement that it is offering discounts for the next two years at the rates previously announced, but warned consumers they could experience higher flood insurance rates.”
This is an opportunity for consumers to save on their flood insurance costs and will allow them to enjoy lower flood insurance premiums.”
The flood insurer said in the statement that it is offering discounts for the next two years at the rates previously announced, but warned consumers they could experience higher flood insurance rates.
The Texas insurance agency is the country’s largest and most expensive.
Hargreaks office said the average premium for a household is $8,872 and for a three-person household is about $8.1 million.
In a separate statement, Harkins told Reuters the average flood insurance premium has increased more than 200 percent since the start of the current crisis in late March.
The increase will likely cause some insurance customers to lose out, Hagerts office said.