Flood premiums change as FEMA renews its program – Lexington-Fayette, Kentucky

Lexington-Fayette, Kentucky 2021-09-17 18:20:23 –

Washington — The past floods in Texas earlier this week, whether due to a tropical cyclone Nicholas or the destruction of an extratropical cyclone that stretched from the vicinity of Louisiana to the northeastern interstate. Weeks have shown why floods are such a risk to Americans.

In fact, according to the Federal Emergency Management Agency (FEMA), floods are the most common and most expensive natural disaster in our country.

And you don’t have to live on the beach to be at risk.

Congress and FEMA

All this flood may make you think about flood insurance, but Congress is thinking about it for other reasons.

The National Flood Insurance Program will expire on October 1st.

Congress is expected to extend the program, but the bigger impact on your life could be the changes FEMA wants to make to its flood insurance policy. Changes may affect pricing.

Currently, the policy is based on the altitude of the house and whether there is a 1% chance of flooding annually.

From October 1st, factors such as flood history, frequency of heavy rains, and proximity to water sources will be taken into account.

The numbers mean that what you pay will change.

FEMA quote About 73% of current policyholders pay $ 1 to $ 20 more per month.

It is expected that 4% of existing policyholders will see price increases of more than $ 20 a month.

However, FEMA also states that about 23% of flood insurance plans will be cheaper, admitting that some Americans have been paying heavily over the years.

“It all depends on where you happen to be,” says Dr. Ed Kerns.

Kerns runs Floodfactor.com This allows anyone to enter their address and see their flood risk.

He says FEMA’s willingness to change is important, but more climate change risk should be taken into account.

“I really want to know how climate change is affecting these heavy rains,” Kerns said.

In reality, some areas will be hit harder by floods in the coming years than others, and Americans need to be insured and prepared to pay more, he says.

“If you are on a grade slab and live in a house next to the sea, or in the lowlands, you should expect to pay your fair share.”

The new policy will change rates next month, and current policyholders will make these changes in April next year.

If you want flood insurance but can’t afford it, keep an eye out for Congress. Proposals to create new subsidies are currently included in the proposed multi-trillion dollar spending bill.

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