Skyrocketing flood insurance comes down to Earth
BATON ROUGE- The Biggert Waters Act of 2012 sent some flood insurance premiums in Louisiana through the roof, but now those payments should be more manageable.
The Homeowner Flood Insurance Affordability Act, passed in March, brings insurance premiums back down to their previous level for homes purchased before 2012.
"It more or less freezes their rates with the subsidized rating of the government, but that will change, or could change in 2017, this is only until 2017, hopefully it won't change, but we don't know that for sure," said Terri Forsman, an insurance agent for Louisiana Companies.
The law alleviates the rising pressure of premiums for primary homeowners. People with secondary homes or businesses will still see a gradual increase in premiums.
Since the National Flood Insurance Program is still looking at a dwindling budget, though, it isn't out of the question for rates to rise again.
"The government has been subsidizing the rating and subsidizing the losses for a long time they're just to the point where we're reaching our ceiling and we just can't keep doing that," said Forsman.
Homeowners who have already paid higher premiums may expect a refund for the difference later this year.