Sunday, March 29, 2015

Rise in government insurance rates to mirror rising waters, flood debt

Rise in government insurance rates to mirror rising waters, flood debt - The Washington Post

"Some owners say they are angry because their houses near lakes, rivers, bays and oceans were much more affordable with cheap rates that will now increase by as much as 25 percent each year until the premiums equal the full risk of settling down on property mapped as a flood zone.

Congress ordered a rate increase because the National Flood Insurance Program (NFIP) managed by the Federal Emergency Management Agency is $24 billion in debt. It reached that historic amount because revenue from the discounted premiums could not cover payments on flood claims, particularly after two devastating hurricanes, Katrina and Sandy, on the Gulf and Atlantic coasts."