Rates for those who buy flood insurance through the federal government are expected to rise dramatically in the coming years, according to the nation’s top federal disaster official.
Craig Fugate, director of the Federal Emergency Management Agency (FEMA) told attendees and reporters at the National Hurricane Conference in New Orleans that homeowners who buy insurance through the National Flood Insurance Program (NFIP) can expect premiums that currently cost several hundred dollars to increase to several thousand dollars over the next three to five years, as the program is forced to become more fiscally solvent.
Those who live in high-risk areas and who have not raised the level of their houses can expect the largest rate increases, he said.
Rates for secondary homes will rise this year, with primary home rate increases following later this year or next year.
Fugate said that his agency, which administers NFIP, has enough funds budgeted to handle most catastrophes this year.
Rick Knabb, director of the National Hurricane Center, said that his agency is working on providing more advance warning of tropical storms and hurricanes.
Hurricane season begins June 1.
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