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WASHINGTON — Homeowners that live in flood-prone areas are getting relief from big increases in insurance costs under legislation President Barack Obama signed into law last Friday, according to the Insurance Journal.
Lawmakers from both parties supported the measure in response to angry homeowners who faced sharp premium hikes after an overhaul of the government’s flood insurance program two years ago, the article stated.
According to the article, the new law caps flood insurance premium increases and allows below-market insurance rates to be passed on to people buying homes in flood zones with taxpayer-subsidized policies.
Critics say taxpayers will end up footing the bill when the next disaster strikes instead of homeowners who choose to live in areas susceptible to flooding, the article noted.
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