FEMA makes changes to National Flood Insurance Program - KXXV Central Texas News Now

FEMA makes changes to National Flood Insurance Program

FEMA is making some changes to its national flood insurance program and it could impact some Central Texas homes and businesses.

FEMA is moving to a risk-based system meaning the higher risk area your property is in, the more you will be paying.

The new round of changes will begin later this year after the Biggert- Waters flood insurance reform act was passed last year.

People who own vacation homes, homes that have experienced repeated flooding in the past or businesses in a flood hazard area will see a %25 rate increase.

Property risk is based on the most current flood map of your area.

Jaqueline Chandler, a FEMA spokeswoman says the hike will happen over time.

"It's going to change over time. They're trying to get to a point where the subsidies will be phased out and basically the flood risk will match the flood insurance rate," said chandler.

According to FEMA only %20 of the five million national flood insurance policies are currently subsidized.

Peoples will be able to keep their subsidized rates for their primary homes until either: the property is sold, the policy lapse, a new policy is purchased or you suffer repeated flood damage.

FEMA is encouraging people to get in contact with their insurance agents to find out specifically how it will affect them.

More changes to the NFIP are expected to start in 2014.

 

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