The west coast worries about earthquakes. The midwest contends with tornadoes. The northeast has winters full of snow and ice. There is a reason the University of Miami calls themselves the Hurricanes. In the southeastern part of the country, tropical storms with strong winds and heavy rain are the source of homeowners’ angst. Actually, those poor northeastern folks have had a few tussles with some serious storms lately. It doesn’t matter where you own a home, you cannot escape the inevitable natural disaster. There are too many amazing things about owning Miami property to allow the occasional thunderstorm to interfere with that dream.
The only sensible course of action for Miami property owners is to invest in a solid insurance policy. In South Florida, homeowners may need to purchase a separate flood insurance policy. Although many condominium and homeowner association fees include some level of insurance coverage, those plans may not include comprehensive flood coverage.
Fortunately, Congress is working (yes, the one in Washington, D.C. in case you thought you misread that) to ensure that such flood insurance plans do not become prohibitively expensive. The proposed spending bill Congress recently introduced includes provisions that will prevent flood insurance rates from skyrocketing. Although the current measure is only focused on short-term relief, the delay is meant to provide lawmakers with more time to formulate a long-term solution.
The fact that Congress is actively addressing this issue now is a positive sign. The move is also an indication that Washington recognizes that it must protect the rebounded real estate market, and it doesn’t want uncertainty over insurance premiums to derail that progress. This is great news for both current and future owners of Miami real estate.