Federal flood insurance rates set to increase

BOSTON — Due to legislation passed in 2012 to make the federal flood insurance program more financially secure, many waterfront homeowners and others who live in flood-prone areas are facing insurance rate increases of 25 percent, according to The Boston Globe.

The rate increases, along with changes in the flood zone maps, are causing pain as far inland as Lowell, where homeowners in high-risk areas pay as much as $4,000 a year, the article stated.

According to the article, some clients who suddenly found themselves in flood zones because of recently redrawn flood zone maps saw their annual premiums skyrocket from $200 to upwards of $2,000 or more.

The rate increases began taking effect on January 1, a result of federal legislation passed last year mandating that the "National Flood Insurance Program raise its rates to reflect flood risks accurately and to be financially self-sufficient," the article noted.

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