NEW YORK (CBSNewYork/AP) — Flood insurance premiums of $30,000 a year?
It might sound absurd, but, as WCBS 880’s Marla Diamond reported, that’s what some homeowners could be facing as astronomical rate hikes are set to take effect nationwide Oct. 1.
The increases are due to the Biggert-Waters Flood Insurance Reform Act of 2012. The measure was passed to keep the National Flood Insurance Program solvent after an onslaught of claims from Hurricane Katrina in 2005. Essentially, what it does is remove federal subsidies from properties in flood zones.