Homeowners Could See Higher Insurance Costs Under FEMA Changes
Newsy
The Federal Emergency Management Agency is changing flood risks based on climate change, which could lead to higher premiums.
A revamped U.S. flood insurance program going into effect this month will charge rates the federal government says better reflect a home's risk, a change that could mean higher premiums for coastal mansions and -- for the first time -- reduced rates for others.
The Federal Emergency Management Agency says its new formula means owners of lower-cost homes will no longer be subsidizing the flood risk for pricier, waterfront properties.
The FEMA program is often the only flood insurance available in areas vulnerable to hurricanes and heavy rains, such as Louisiana's Gulf Coast. The agency underwrites the policies, which homeowners can buy through private insurance companies.
