Flood insurance rates rise as federal subsidy ends
Premium for one Indy homeowner went up 300%
Last Updated: 46 days ago
INDIANAPOLIS - Changes to a federal subsidy program have resulted in some insurance premiums going up as much as 300 percent for homeowners.
For decades, the National Flood Insurance Program has helped homeowners cover their premium costs, but Congress recently reformed the program, removing the subsidy.
Rates are set to go up for homeowners like the Larners who purchased a home in a floodplain near 62nd and Meridian streets two months ago.
"On October 3, my insurance agent called, I was driving at the time, and said I've got some bad news. She said your flood insurance premium is about to increase significantly," Liz Larner said.
From almost $2,100 per year to $6,500 per year -- it basically tacked an extra $500 a month onto the Larner's mortgage.
The Larners are now forced to reevaluate their daughter's college fund, their retirement plans and their hopes to transition to a one-income family.
Larner said some of her neighbors are in the same boat.
"We've got all these houses in our neighborhood that are for sale. These people are going to have a really tough time selling a house and asking someone to pay $6,000 every single year for flood insurance," Larner said.
Larner is in the process of contacting her local and federal representatives, hoping to raise awareness to the issue and try to get the law changed.
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