Flood-prone homeowners could see major rate hikes in FEMA flood insurance changes, new study finds

With a major overhaul of the nation’s flood insurance program just months away, new data released Monday by the First Street Foundation suggests hundreds of thousands of homeowners in the riskiest locations across America could face massive rate hikes starting in October.

The Brooklyn, New York-based research group estimates the average rate needs to more than quadruple on the nation’s most flood-prone homes under the ongoing effort to make the federal flood insurance program solvent and ensure homeowners most at risk are paying their fair share.

First Street data projects that the majority of homeowners won't see big rate changes, and others could see premiums decrease. But for some 265,000 properties, annual premiums would need to climb $10,000 or more to match the actual risk. Those with more expensive properties are estimated to see the biggest premium increases.

Any actual rate hikes adopted by the federal government would be slowly phased in for existing policyholders.

Read more: https://www.starnewsonline.com/in-depth/news/investigations/2021/02/21/fema-flood-insurance-rates-could-spike-some-new-study-shows/6764469002/
(Wilmington Star News)