Flood insurance rates growing too quickly for many property owners to handle
Property owners throughout the U.S. have begun banding together to oppose costly flood insurance rate hikes. Premiums on all flood insurance policies that were renewed after October 1 have grown by an average of 10%, putting more financial strain on property owners throughout the country. The majority of these policies are issued through the National Flood Insurance Program, which has been undergoing a significant overhaul over the past two years. Property owners are reaching out to the U.S. Congress in order to mitigate the growing costs of flood insurance coverage.
Federal law spurs growing costs of flood protection
Flood insurance premiums are on the rise due to the Biggert-Waters Flood Insurance Reform Act of 2012. The federal law is meant to rectify the problems with the country’s flood insurance program. The program has been crippled by financial issues that first emerged in 2005 in the wake of Hurricane Katrina. These issues have persisted for several years, making the program a financial liability for the federal government. The law passed in 2012 intends to raise flood insurance rates over time in order to mitigate the program’s financial failings.
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Insurance premiums put financial strain on property owners
For some property owners, flood insurance premiums have gone from $300 a year to over $800. Others are paying significantly more for their flood protection coverage. Higher premiums were meant to be introduced slowly over the course of several years, but many property owners are suggesting that premiums are rising far too quickly for them to manage. The financial tension that federal reforms have created has caused property owners to come together in order to call Congress’ attention to the issue.
Resolution aims to delay further rate increases for a year
The Business Alliance for a Sound Economy has developed a resolution that could provide property owners with some relief. The resolution calls on federal lawmakers to delay the further increase of flood insurance premiums for a whole year. The intent of the resolution is to provide time for the economic impact of higher flood insurance premiums to be studied in order to better understand the effects of the Bigger-Waters Flood Insurance Reform Act.