"A new law meant to stabilize the federal government's money-losing flood-insurance program is starting to send rates sky high, prompting a growing backlash in coastal areas."
"The Biggert-Waters law, enacted in 2012 before superstorm Sandy hit the Eastern Seaboard, requires that government insurance premiums for the 5.6 million property owners in flood-prone regions be set at a level that better reflects the full risk of flooding. It was prompted by cumulative losses that had ballooned to $24 billion for the National Flood Insurance Program.
The changes mean some owners must retrofit their homes or businesses—by raising buildings higher above the ground and taking other measures—to better guard against flooding, or pay rates that could surge to $10,000 and higher a year."
Siobhan Hughes reports for the Wall St. Journal August 12, 2013.
SEE ALSO:
"Scientists Skewer National Flood Insurance Program, Citing Waste, Massive Debt" (NJSpotlight)
"Overwhelming Risk: Rethinking Flood Insurance in a World of Rising Seas" (Union of Concerned Scientists)
"Flood Insurance Prices Surge"
Source: Wall St. Journal, 08/15/2013
