Flood Insurance Rates Spike For Some MD Homeowners - 47 ABC - Delmarva's Choice

Flood Insurance Rates Spike For Some MD Homeowners

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FEDERALSBURG, Md. - Folks in Federalsburg, Maryland could see their flood insurance rates soar.  The small Eastern Shore town has one of the highest percentages of policies facing hikes in the state.

"FEMA's broke...and they're using us...to pump up their resource," says the town's Mayor Bill Beall    

The National Flood Insurance Program's debt rose to $16 billion dollars after Hurricane Katrina, then jumped to $24 billion after Superstorm Sandy.

Insurance agent Reese Cropper says "the government finally realized they weren't getting enough premium for the amount of risk they were insuring."

This prompted Congress to step in, reevaluating subsidized homes in flood zones, which, because of how they're built, are more prone to damage, and see higher insurance rates. 

According to insurance experts, most policy holders won't see their rates increase, but that's not the case for Federalsburg, where about 80 percent of policy holders could see theirs double.

Of the ninety homes in town, along the Marshyhope Creek, have flood insurance, seventy six will see rates double.

Cropper says there is a possible solution for homeowners facing skyrocketing rates, "if this person jacks their house up...which they can do...it'll cost them some, but if they do, they won't have to pay those high rates."

But Mayor Beall doesn't think that would work for his small town.

A FEMA rep we spoke with says anyone with questions about whether their flood insurance could go up should contact their insurance agent.

For folks in Federalsburg, on April 7th, there will be a public meeting with a rep from the Maryland Department of the Environment (MDE) to help clear up concerns.

 

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