Experts from the Federal Emergency Management Agency say rate changes are likely ahead for some National Flood Insurance Program policyholders. The program is currently $24 billion in debt following several disastrous storms in recent years. The costs and consequences of those storms have strained the NFIP, and as a result FEMA says subsidized rate are no longer viable.
Just last year, the program was reauthorized through 2017 after years of operating under short-term extensions. According to FEMA, reforms to the program combined with the gradual phase-out of subsidized rates will help increase the NFIP’s soundness and financial stability.
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Rate changes are likely to affect owners of subsidized, non-primary residences, business properties and properties that have experienced severe repetitive flood losses. For more information, read the news release about rate increases for policy holders.