Flood insurance continues to be a problem in the US
Flood insurance rates in the U.S. are set to rise as the Federal Emergency Management Agency (FEMA) redraws vital flood maps around the country and major changes to the National Flood Insurance Program become active. FEMA has been working to address the changing risks associated with floods and natural disasters over the past few years and revising its flood maps is a major part of this process. Unfortunately for homeowners in risk-prone areas, this could mean higher flood insurance rates. This could also mean that homeowners located outside of such areas could find that they are now considered prone to flood risks per revised flood maps.
Costs of flood coverage continue to grow
With FEMA and the federal flood insurance program pushing insurance rates higher, homeowners and advocacy groups throughout the country are seeking answers. Per federal law, homeowners in risk-prone areas must make drastic and expensive renovations to their properties in order to avoid higher flood insurance rates and many of these homeowners are looking for justification for such a law. FEMA administrator Craig Fugate may be able to provide such justification.
FEMA administrator to testify concerning flood insurance premiums
Fugate is set to testify at the U.S. Senate Banking Committee hearing in order to address the issues associated with higher flood insurance premiums associated with the federal flood program. The hearing is to be held on September 18 and is expected to shed light on the reasons behind the need for higher premiums. The impact of recent storms, such as Hurricane Sandy, and the lackluster flood protections in place in many states are often considered major factors in the growing costs of flood insurance.
Fugate may have to defend agency and federal program against critics
Fugate is not only expected to defend the actions of FEMA and the National Flood Insurance Program. The administrator is likely to face harsh criticism from lawmakers that do not support higher flood insurance premiums. One of these critics is Senator David Vitter of Louisiana. Vitter is keen to see FEMA rescind its revised flood maps of the southern parts of the state, which have led to a rise in flood insurance premiums for homeowners located in this area.