The New and Improved Flood Program Could Make Matters Worse, In the short Term

If Congress passes the Flood Modernization act, then flood rates will go up 15% a year for a while in order to get the program in line with actuarial rates. This will most likely cause more people to be uninsured for floods as the premiums rise and people drop the coverage. In the short term this is not a good thing but is the only way to get the NFIP (National Flood Insurance Program) on solid finanical footing. The new act before Congress will also force the program to set aside reserves which is prudent for an insurance entity. I know the timing of increased insurance rates is not good with the economy sputtering, but this is a good move to assure the programs viability into the future. Until next time be careful out there and know your risks. K

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