EDITORIAL: Flood insurance changes need more tweaking [The Beaumont Enterprise, Texas]

Oct. 30--After years of inaction on problems with the National Flood Insurance Program, Congress finally tackled this challenge with the Biggert Waters Act, which took effect Oct. 1. Unfortunately, the cure is worse than the disease for many homeowners, and Congress needs to revisit this issue again.

For many property owners in flood-prone areas, like the Bolivar Peninsula, the problem is simple: staggering flood insurance rate increases. Several realtors and insurance representatives know of Bolivar residents whose flood-insurance premiums increased from $2,000 per year to $20,000.

There has to be a better way, especially for homes that have been rebuilt to higher standards.

One obvious compromise would be to grandfather in older homes, something that Biggert Waters didn't do. If these properties have survived this long, they're either fairly well built or in a fairly safe location.

No one should be asking for a free ride here. For many property owners in or near flood zones, their premiums will increase even if Biggert Waters is amended. But the National Flood Insurance Program can't be fixed overnight, so Congress needs to phase in changes prudently.

A flood insurance policy of $20,000 per year, along with high costs for standard homeowners insurance and windstorm coverage, would blow the middle class out of most markets like a Category 5 hurricane. Places like the Bolivar Peninsula could either become reserved for the wealthy ... or depopulated.

Neither extreme is desirable, and Congress has to find a better path to get from where we are to where we want to be.

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