Proposed changes to US flood insurance program could hike rates

by JayLee posted Mar 17, 2019


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WASHINGTON (Bloomberg) — Flood insurance premiums could rise and property values fall in the most deluge-prone areas under a plan the Trump administration intends to roll out to change the way risk is calculated under the National Flood Insurance Program.

Instead of simply focusing on whether a home is inside or outside of the 100-year flood plain, the Federal Emergency Management Agency plans to use private-sector data to calculate the real flood threat for each home and set costs based on that data, according to people familiar with the effort and a briefing document obtained by Bloomberg.

Samantha Medlock, North America head of capital, science, and policy at insurance broker Willis Towers Watson Plc, said the change “could be the first major advancement to improve THE understanding of flood risk since the creation of the NFIP itself.’’

The change could also hurt communities with the greatest flood risk. The new policy “is certainly an issue of concern and one we are actively tracking and engaged on,’’ Liz Thompson, spokeswoman for the National Association of Home Builders, said in an$medium.jpg