Flood insurance costs rise in areas once deemed lower risk

By SUMAN NAISHADHAM and MICHAEL PHILLIS
Associated Press

WASHINGTON (AP) — A revamped federal flood insurance program means higher rates for many homeowners — including in areas where coverage isn’t required because the government previously deemed them low or moderate risk. The Federal Emergency Management Agency says that 90% of the 1.7 million single family homeowners that voluntarily buy federal flood insurance in lower risk areas will see their rates go up. The change is part of FEMA’s effort to eventually collect 50% more in premiums. Officials say the new pricing method considers more types of flood risk. It also says the overhaul factors in more of an individual property’s risk.