Insurance Journal does an excellent job of summarizing the aftermath of the newly enacted legislation providing flood insurance rate hikes relief to some. In “With Fix for Flood Insurance Program Deficit Delayed, Now What,” the article examines a couple of options that could slow, if not stabilize, the mounting debt of the troubled National Flood Insurance Program.

At least 1.1 million policyholders are still likely to see insurance premiums rise substantially in the next few years as the government whittles down rate subsidies for people in the riskiest flood zones. The Associated Press found hundreds of river towns, port cities and coastal communities where future rate hikes might make it tough for people to keep their homes and businesses.

Yet, if premiums stay as low as they are now, those same communities could cost taxpayers billions of dollars when they do eventually flood, thanks to decades of low premiums that have given homeowners few incentives to flood-proof their properties.

One potential option promoted by some experts would be to make low-interest loans available to help people elevate their homes above the high-water mark.

The Association of State Floodplain Managers has also advocated for an income-based voucher system, as well as rate reductions for mitigation that stops short of full elevation of a home, like moving home heating and electrical equipment to less vulnerable parts of a house or installing water-tight doors and windows.

Read this original article at Insurance Journal.

Many contend relief legislation stalls any momentum to restore National Flood Insurance Program (NFIP) solvency and to fix inherent flaws that penalize low-risk property owners by charging full actuarial premiums while continuing to subsidize the premiums of those truly high-risk.

If you own, manage or represent property subject to flood insurance requirements, be diligent about flood risk:

  • Stay informed of flood insurance rate map changes in your area.
  • Contact your legislative representatives and tell them unequal treatment of property owners is unacceptable.
  • Conduct a flood risk evaluation, a proactive strategy to mitigate flood risk, protect the real estate investment and verify whether the structure is built to minimize the risk of flooding.

Contact AmeriFlood Solutions for more information, including a complimentary flood risk evaluation performed by an expert team of flood risk professionals.

Image via Flickr under Creative Commons license.

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