Flood insurance woes on the horizon

An older home, with its lowest floor 6 feet below the base flood elevation, has paid about $2,500 annually for flood insurance. The new rates going into affect could raise the premium to $15,000 annually. Why?  There have been subsidies in place for older homes which did not have elevation certificates that are now being phased out. Congress passed the Flood Insurance Reform Act of 2012 requiring FEMA to eliminate a $20 billion deficit in the flood insurance program caused by disasters like Katrina and Sandy. To meet that requirement, FEMA is removing the subsidy on about 20% of all policies nationwide for home built before 1975. Pinellas Country has the largest number of parcels ( 51,000 ) in the nation affected by the law. Hillsborough and Sarasota counties are in the top 12. As people try to renew their policies, they will be required to get an elevation certificate...and their rates  may skyrocket. With home sales up +9% this year along the beach, this change in flood insurance premiums could be catastrophic for home sales.