Tuesday, March 25, 2014

Flood-prone Ky. River Towns to see Insurance Hikes

Thousands of Kentucky residents and business owners are facing yearly flood insurance premium increases as the federal government seeks to erase billions in debt from the National Flood Insurance Program.

Congress passed a law in 2012 requiring about 1 million policyholders to begin paying rates based on the true risk of flooding at their properties. But Congress amended that law this month after an outcry over the one-time increases. Policyholders would instead pay premiums that increase gradually each year.

About half of the 24,000 properties in Kentucky with flood coverage will have adjusted premiums, including about 8,000 single family homes or condominiums that will see annual increases in premium costs of up to 18 percent. About 1,400 businesses across the state will see a flat 25 percent rate increase.