For years, residents of coastal areas within the U.S. have been paying relatively little in flood insurance premiums, considering the catastrophic nature of the threat they face. The low premium rates were partly due to the federal government’s subsidizing of this type of insurance, through the National Flood Insurance Program.
Since Hurricane Sandy and the extreme financial losses it caused, there has been a reevaluation of the system. Last year, Congress passed the Biggert-Waters Flood Insurance Reform Act. The bill will, in incremental stages, remove government subsidies that have historically kept flood insurance premiums artificially low for over a million policyholders nationwide.
The Insurance Pro 