Competition may be driving down flood insurance - FOX 13 News

Competition may be driving down flood insurance

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A couple living in an area prone to flooding cut their flood insurance costs by more than $7,000 by doing business with a private insurer instead of through the National Flood Insurance Program.

Kimberly and Drew Andrews moved into Shore Acres around this time last year and are the first in Pinellas County to take advantage of what private insurance companies have to offer.

Since they bought their home after the Biggert-Waters Act had passed, they lost their original flood rate of $1,406 a year.

They were then quoted at $8,700.

"That kind of was shocking. You expect an increase, but that was just not at all what I thought it was going to be," Kimberly Andrews said.

She started making calls to various insurance agents to try to find a lower rate.

One called back and said, "I can get you in the Lloyd's of London market for $1,300."

Kimberly and her husband jumped on that offer given the thousands in savings.

Lloyd's of London is able to offer such low flood insurance rates because of the number of homeowners jumping from NFIP coverage and onto theirs, Jake Holehouse of Holehouse Insurance explained.

"You now have multiple companies, even multiple companies within Lloyd's of London that want to write flood insurance and the more competition you have, the better pricing the consumer gets," Holehouse said.

Kimberly Andrews said she would not have found out about Lloyd's without doing loads of research.

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