Flood Insurance Rates Set To Spike For Arizona Property Owners
Thousands of Arizona home and business owners whose properties lie in flood plains are facing steep, annual increases in insurance premiums.
The federal government has been subsidizing flood insurance for properties built before flood zones were outlined. The problem is insurance premiums have not been covering the payouts, leaving the National Flood Insurance Program $24 billion in debt.
As part of a relief bill, signed by President Barack Obama on Friday, the rate hikes will be phased in gradually instead of going up dramatically right now.
More than 1,300 business and second-home owners in Arizona will see increases of about 25 percent per year, with more than 4,600 homeowners seeing hikes of up to 18 percent annually.
In Bisbee, 69 percent of the policyholders with subsidized rates will be affected. Real estate agent Rosalie Butler said that is definitely not going to help the Bisbee real estate market.