August 22, 2007

DrainageNews - Katrina renews calls for change in rebuilding rules - USA Today

In risky areas, many homeowners enjoy artificially low flood insurance rates — a legacy of the government's effort to prod communities to join the federal flood insurance program, which began in 1968. Meantime, a 2004 federal law that lets flood insurance rates rise sharply if homes with repeated flood damage aren't moved or elevated hasn't taken effect because the government is still ironing out details of how to implement it. Donald Powell, federal coordinator for post-Katrina rebuilding along the Gulf Coast, says raising insurance rates on subsidized properties that flood repeatedly would put the struggling flood insurance program — which has borrowed more than $17 billion from the U. Collier says rebuilding on Dauphin Island is occurring more slowly than after previous hurricanes because prices on homeowners insurance — issued by private insurers, unlike government-issued flood insurance — are rising and because of the one-two punch of Ivan in 2004 and Katrina in 2005. Across the USA, properties with repetitive flood losses — two or more flood claims within 10 years — make up only 2% of all flood insurance policies but account for nearly one-quarter of all payouts, according to federal data. read me

[Tags]flood, insurance, 8212, homes, katrina, federal, drainagenews[/Tags]

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