Cost to insure flood-prone Florida homes can exceed mortgage

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With recent rate increases making the cost of federal flood insurance for homes in flood-prone areas more expensive than their mortgage payments, St. Pete Beach, Fla. real estate agents and city officials are worried that home sales and property tax revenue could take a big hit.

After Hurricane Sandy, the rules for flood insurance were changed in July 2012 to make sure that premiums cover claims. Annual premiums for some homes in St. Pete Beach below “base flood elevation” will total $24,000 or more when the increases take effect. Source: tampabay.com.