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Remapping results in reduced flood insurance for somePosted On Wed, May 26, 2010
The Federal Emergency Management Agency recently redrew the floodplains map in order to more accurately determine the risk that homeowners may face. In doing so, many consumers feared their insurance rates would rise.
Instead, the federal agency will allow lower rates to be offered over the next two years for homeowners affected by the change, the Associated Press reported. Consumers will be offered the Preferred Risk Policy from the National Flood Insurance Program - the cheapest option available - for those in newly designated flood areas. It's expected that new rates will became available this fall.
Les Sterman, an administrator of a flood-protection district, told the AP that the less expensive premiums "are quite reasonable, and everyone in the area should buy insurance at those rates. It's considerable relief to a point, obviously." The program's $300 annual premium is estimated to be as much as five times less expensive than other coverage.
The NFIP is the most widely used option for homeowners obtaining flood insurance in the U.S. The program is in a constant state of flux, and its current expiration date is scheduled for May 31, 2010.
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