The cost of flood insurance for one of these nearly identical beach houses is about to go up, while it will stay the same on the other.
Congress mandated the hike for second homes but not for primary homeowners. Letters like this one are being sent to more than 270,000 owners of second homes in Florida. It says their flood insurance will go up by 25%.
Sam Rogers Junior is the incoming President of the Florida Association of Insurance agents.
"It is not well known, It's not affective until October 1st, so it's just now starting to come out in notices related to insurance," said Sam Rogers Jr.
Flood insurance is required by lenders. Keith Phelps ditched his policy once his mortgage was paid off.
Policy holders who are late making a payment or who cancelled their policy and then try and get it back are in for a surprise. They'll have to pay full price and that is going to be more than the 25% increase going into effect now.
The hike was necessary to reach a deal in Washington. Without it, it’s likely the program would have died in a political standoff.
“And it's a big ticket item. Flood insurance is a large part of anybody's who is on the river or the beaches insurance cost," said Rogers.
The hike also has developers and realtors worried. Increasing the cost of Flood insurance will make second homes that much more expensive.
Legislation has cleared the US House to delay the October hikes. There is no word on when or if the Senate will take it up.