HARTFORD, Conn. (AP) — A private flood insurer is the first to step into Connecticut’s market, offering homeowners along the shoreline battered by Superstorm Sandy an alternative to the high cost of federal insurance.
The Flood Insurance Agency of Gainesville, Fla., is writing flood insurance policies in Connecticut.
CEO Evan Hecht says the market was established in response to federal legislation that eliminated subsidies on federal flood insurance in 2012 to bring insurance rates more in line with the real risk of flooding.
One unintended consequence was that home buyers were alarmed at huge insurance premiums that come with houses they were considering purchasing.
Hecht says policies from his company aren’t intended for properties that are a frequent flooding risk. Policies will typically be for older homes with basements.
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