Flood insurance costs rising sharply - MSNewsNow.com - Jackson, MS

Flood insurance costs rising sharply

Posted: Updated:
JACKSON, MS (Mississippi News Now) -

Mississippi Emergency Management Director Robert Latham isn't sugar coating it. Mississippi and the rest of the nation have endured repeated natural disasters over the past few years, and the National Flood Insurance Program can no longer sustain itself.

"As it stands right now, we're gonna see significant increases in insurance premiums," Latham said.

If you take part in the NFIP, you will see a 5 percent increase at least. After that, it depends on what your situation is. If you live in a place with repeated floods, in a coastal county or in the Ford neighborhood in Vicksburg for example, your rate is rising 25 percent per year until the rates reflect the true risk.

If you sell your home, the same 25 percent annual increase will apply for the buyer, even if the home is not in one of those severe repeated flood areas.

The 25 percent per year increase also applies if you have a second or non-primary home.

"If people want to live in areas where the risk is higher, they're gonna have to pay more money to insure their property. That's what it boils down to," Latham said.

The rate increases were authorized by Congress in 2012. Homeowners are encouraged to talk to their insurance agents and consider remodeling or rebuilding higher to save on flood insurance costs.

Click here to see if you're in a flood plane.

Copyright 2013 MSNewsNow. All rights reserved.

Powered by WorldNow