NEW ORLEANS – It is an issue that has some Louisiana homeowners very concerned, flood insurance costs, and the concern comes as a rate hike is on the horizon for homeowners in Louisiana and across the United States.
After staying out of the issue for months, now Governor Bobby Jindal is publicly joining those in support of stopping higher flood insurance rates.
About half a million residents and businesses would feel the sting of high flood insurance rates if nothing is done to improve the Federal Flood Insurance Program.
Homeowners have been told their rates could increase anywhere from $3,000 to $33,000, depending of the cost and location of the home.
The rate increases are due to the Biggert-Waters Flood Insurance Reform Act, the act that calls for FEMA and other agencies to make a number of changes to the way the National Flood Insurance Program is run.
With new flood lines being redrawn, several homes and businesses are now included in what is considered “flood zones,” which puts them at a higher risk for flooding and thus higher flood insurance rates.
Governor Jindal wrote to members of Congress asking them to put forth every effort into delaying the increases and looking for an option that wouldn't cause people to have to give up their homes. “Better, more fiscally responsible solutions are available,” Jindal said in his letter, also adding that any rate hike is “irrational at this point.”
The Senate recently passed a bill calling for the insurance rate hikes to be delayed for four years.
The House is expected to look at a similar version, a version of its own this month.