Flood insurance changes to hit local wallets hard | savannahnow.com

Flood insurance policy holders would do well to flood their savings accounts with extra dollars in the months ahead.

Significant premium increases will take effect this October as part of changes to the National Flood Insurance Program. The NFIP is a federal initiative that insures property located in low-lying areas against floods, which are not covered under homeowner’s insurance policies.

Premiums will increase by an average of 10 percent annually for the next five years as the Federal Emergency Management Agency builds up a reserve fund for the NFIP. Coastal hurricanes such as Sandy and Katrina and the floods that have plagued areas along the Mississippi and other rivers in recent years have left the NFIP $24 billion in debt.

via Flood insurance changes to hit local wallets hard | savannahnow.com.