Residents along the coast of Long Island face as much as 18% annual increases in their flood insurance premiums as the federal risk management program seeks to steady its footing in the midst of deep debt.
The 49-year-old National Flood Insurance Program has been increasing premiums as it tries to deal with the $25 billion debt it incurred to deal with major storms such as Sandy and Katrina.
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More than 85,000 Long Island residents took out federal flood insurance last year, according to a report by local media outlet Newsday. These homeowners have been entitled to subsidies intended to encourage them to use insurance to mitigate their flood risk.
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However, these subsidies are now being phased out and homes at high risk are paying the price.
Premiums in New York are pegged at $1,111, 37% higher than the national average of $700, according to figures quoted from the Federal Emergency Management Agency, which supervises the NFIP.
Federal flood insurance also faces uncertainty as Congress votes whether to continue the NFIP or not after it expires on September 30 this year.
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