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Flood Insurance Premiums to Increase

03/28/2014

(AP) -- Flood insurance premiums are going up. Thousands of residents of Nebraska and Missouri will be affected as the federal government prepares to end the decades-old subsidy program, despite Congress offering temporary relief for the worst of the price hikes.

An Associated Press analysis shows that 2,050 policies in Nebraska are expected to face the mandatory 25 percent annual increase with another 3,746 to grow by up to 18 percent annually.

Premiums collected have not bee sufficient to cover payouts, leaving the Flood Insurance Program $24 billion in debt.

In Kansas nearly 40 percent of the 5,500 policyholders will see annual increases.

According to an Associated Press story, in Missouri, people living near the rivers are often poor or on fixed incomes. Dropping insurance is not an option for most because banks require mortgage holders to carry the insurance.

One Missouri mayor says he believes the change will mean selling property that is so costly to insure will be hard to do and could mean people will simply be forced to abandon their homes.

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