CarriageTowneNews.com, Kingston, NH

Community News Network

November 12, 2013

Flood insurance changes may swamp homeowners

JOHNSTOWN, Pa. — Cuts to federal flood insurance subsidies threaten to cause steep hikes in insurance bills for those buying property in FEMA-designated "high risk" areas, and the ripple effect is washing onto the main streets and blue-collar blocks of the nation's river cities and towns.

For places like Johnstown, Pa. – a river valley town known for three major floods, the most recent in 1977 – it could be "devastating," said Brett Insurance Agency President Jim Brett.

The unexpected added annual expense could make home ownership unaffordable for recent home buyers or prompt prospective buyers eyeing a new home or business to shy away from flood zone neighborhoods.

Longtime homeowners in flood zones wouldn’t see the rate changes, but it could make selling their homes "a nightmare" because buyers would be forced to pay the higher insurance rates, Brett said.

Lisa Broadwater opened her salon in downtown Johnstown in the months following the act's July 2012 passage, meaning her property falls under the new guidelines.

Her current $300 per year flood insurance cost is likely to jump to $679, she said.

"You think you have all of your monthly expenses into consideration and something like this happens," she said.

Brett said some early annual estimates are worse, jumping from a few hundred dollars to more than $1,000 per year.

Subsidy cuts through the Biggert-Waters Flood Insurance Reform Act just went into effect on Oct. 1, but premium rates don’t change until annual renewal notices arrive.

Brett said he wasn’t surprised Congress ushered in sweeping changes to the National Flood Insurance Program last year. Major East Coast disasters helped put the program $25 million in debt, partly because payouts in disaster areas were sometimes ballooned by inflated local market rates, the bill's supporters noted at the time of its passage.

Text Only
Community News Network

New England News
Obituaries
  • Elwood (Al) Shaw, 93

    Meredith, NH — Elwood (Al) Shaw, 93, of Center Harbor, passed away peacefully on Sunday, March 30, 2014, at Forestview Manor in Meredith. He was the beloved husband of the late Greta L. (Sykes) Shaw, to whom he was married for 62 years.

    Continued ...
    The Carriage Towne News Thu, April 17
    3 hours 1 Photo
  • Jo Ann Hughes, 79

    Sandown, NH — Jo Ann (Phelps) Hughes of Sandown, New Hampshire passed away on Thursday, March 27, 2014, surrounded by all of her children at home. She was born in Little Bend Kentucky, to Beatrice (Shepherd) Phelps and John (Cat) Phelps in 1934. Jo Ann was predeceased by brothers, Marcus Phelps, Johnny Phelps, Forrest Phelps and sisters, Juanita Phelps, and Jeanette (Phelps) Vincent. She is survived by brother, Donald Quiggins of Georgia; sisters, Geneva (Phelps) Stanley of Kentucky, and Frances (Phelps) Bratcher of Tennessee who had just visited Jo Ann in September of 2013.

    Continued ...
    The Carriage Towne News Thu, April 17
    3 hours 1 Photo
  • Sherry Lynn (Cookson) Scanzilo

    Raymond, NH — Sherry Lynn (Cookson) Scanzillo, 58, of Raymond, N.H., passed away Saturday, April 5, 2014, at the Elliot Hospital surrounded by her loving family after a sudden illness.

    Continued ...
    The Carriage Towne News Thu, April 17
    3 hours 1 Photo
  • Thomas Hugh Clinton, 73

    Atkinson, NH — Tom passed away on Sunday, March 30, 2014, at Elliot Hospital in Manchester. Tom was born on October, 30, 1940, at Clover Hill Hospital in Lawrence, Mass., as the only child to Hugh Clinton and Evelyn (Forcier) Clinton. Tom graduated from Methuen High School in 195

    Continued ...
    The Carriage Towne News Thu, April 17
    3 hours 1 Photo
  • Jo Ann Hughes, 79

    Sandown, NH — Jo Ann (Phelps) Hughes of Sandown, New Hampshire passed away on Thursday, March 27, 2014, surrounded by all of her children at home. She was born in Little Bend Kentucky, to Beatrice (Shepherd) Phelps and John (Cat) Phelps in 1934. Jo Ann was predeceased by brothers, Marcus Phelps, Johnny Phelps, Forrest Phelps and sisters, Juanita Phelps, and Jeanette (Phelps) Vincent. She is survived by brother, Donald Quiggins of Georgia; sisters, Geneva (Phelps) Stanley of Kentucky, and Frances (Phelps) Bratcher of Tennessee who had just visited Jo Ann in September of 2013.

    Continued ...
    The Carriage Towne News Thu, April 10
    7 days

Stocks