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Increased insurance costs may force many from coastline

Posted On Mon, December 3, 2012

A planned increase in insurance costs combined with costly new zoning requirements may force many homeowners to move away from the East Coast following Hurricane Sandy, according to the New York Times.

A planned 20-25 percent increase in flood insurance rates will come into effect on January 1, increasing the cost of owning property on the coast by thousands of dollars a year. All homeowners in the area will be required to have flood insurance, which may prove to be too much for some.

Additionally, newly-designated flood hazard zones have costly building requirements for homeowners who need to reconstruct their flood-damaged homes. Although the measures are put in place to increase the safety of the structures in the area, many homeowners may find that it is too expensive to continue living near the sea.

The increased flood insurance rates were put into effect to prop up the debt-ridden National Flood Insurance Program, a federally-funded arm of the Federal Emergency Management Agency that provides most of the flood insurance policies owned across the country.

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