PANAMA CITY, Fla. (WMBB) — Panama City residents will soon be able to buy cheaper flood insurance.
Starting in October, flood insurance will be discounted by 25% for people buying insurance. Residents with insurance will have a 5% discount because their insurance is already discounted by 20%.
The break comes because Panama City insurance’s community rating system improved from a Class 6 to a Class 5.
National Flooding insurance covers direct surface flooding from rivers, creeks, bays or the gulf. It also protects against local drainage problems. With homeowners insurance rates climbing statewide, it’s one of the few breaks locals have seen in years.
“We now are able to offer or people can get their flood insurance for 25% less, which is a big deal because flood insurance in the last 25 years I know I own property has continually gone up and 25% of a big number is a big number,” Panama City Mayor Greg Brudnicki said.
The new rates will go into effect on October 1. City officials are hoping the current infrastructure upgrades will help improve the rating to a Class 4, and another discount on flood insurance.