Flood-insurance reprieve may be brief - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
March 25, 2014 Newswires
Share
Share
Post
Email

Flood-insurance reprieve may be brief

David Hurst, The Tribune-Democrat, Johnstown, Pa.
By David Hurst, The Tribune-Democrat, Johnstown, Pa.
McClatchy-Tribune Information Services

March 25--Melissa Uzelac thought it was bad enough paying $1,000 a year for flood insurance on a home she owns in working-class Woodvale.

Then, because of a 2012 law seeking to pull the government's Flood Insurance Program out of debt, the annual cost to insure it rose to $7,000 last year.

"Outrageous,"?she said.

A similar outcry nationwide has prompted lawmakers to roll back premium costs in high-risk zones to 2012 rates. But for many policyholders such as Uzelac, it may be a temporary reprieve, soon to be replaced by smaller but still significant hikes, lawmakers admit.

The exact effect on Pennsylvania's 34,400 flood-insurance policyholders is uncertain. But the new law, signed on Friday by President Barack Obama, appears to cap annual premium increases at 18 percent for most residential homeowners in high-risk areas, compared with the higher increases.

For business owners, the cap will rise 25 percent annually.

Disasters such as hurricanes Katrina and Irene prompted the changes.

Congress pushed the Biggert-Waters Flood Insurance Reform Act in 2012 because the nation's flood-insurance program was $25 million in debt.

When it passed, the bill's supporters said disaster payouts were often boosted by inflated local market rates in coastal towns. The law's changes also increased rates in small towns and river cities across the country, sparking outrage nationwide.

The U.S. House and Senate both worked to enact delays. The bill earned bipartisan support in both chambers.

U.S. Sens. Robert Casey Jr. and Pat Toomey of Pennsylvania both supported the plan.

"These affordability measures will help ensure that we have a strong, sustainable flood insurance program that does not hurt local property markets or burden homeowners with unaffordable premiums,"?Casey said.

U.S. Rep. Keith Rothfus, R-Sewickley, and 306 members of the House backed the plan, saying it provided "needed relief" while working to make the Flood Insurance Program solvent.

U.S. Rep. Bill Shuster, R-Hollidaysburg, cast a dissenting vote. Multiple attempts to reach Shuster's office for comment were unsuccessful.

FEMA data show 471 policyholders in Johnstown will still face rising premiums due to the recent law changes. Many of them are businesses.

"This doesn't solve the big problem," Uzelac said. "How does someone in an area like Johnstown sell their home or business when it means paying $1,000 a month just on flood premiums??It's one thing if you're talking about a beach house -- but this is Johnstown."

In Cambria County, 34 other communities also have territory in high-risk flood zones. There are 36 in Somerset, including Somerset Borough and Windber, which has 103 homes in high-risk territory, the data show.

Jim Brett, president of Brett Insurance Agency of Johnstown, said some questions remain unanswered.

It could be a while before those who've been hit with massive rate increases see their rates rolled back, he said.

"We still don't know how FEMA will implement the changes," Brett said. "We still don't know how long it will take before these new guidelines take effect."

David Hurst is a reporter with The Tribune-Democrat. Follow him on Twitter at www.twitter.com/tddavid-hurst.

High-risk policies by municipality

Those with high-risk flood insurance in the region will see massive rate hikes rolled back -- but not for long. These figures detail the number of flood insurance policyholders impacted, followed by the percentage they comprise of total flood insurance policyholders in the community:

Cambria County

Adams Township: 45 (69%)

Barr Township: 1 (25%)

Blacklick Township: 1 (33%)

Cambria Township: 3 (75%)

Clearfield Township: 1 (33%)

Conemaugh Township: 2 (100%)

Croyle Township: 16 (50%)

Dean Township: 1 (25%)

East Carroll Township: 1 (33%)

Ferndale: 2 (81%)

Gallitzin Township: 2 (100%)

Geistown: 5 (42%)

Hastings: 1 (50%)

Jackson Township: 1 (20%)

Johnstown: 471 (68%)

Lilly: 2 (67%)

Lorain: 5 (71%)

Lower Yoder Township: 1 (10%)

Nanty Glo: 12 (92%)

Patton: 14 (56%)

Portage Borough: 9 (45%)

Portage Township: 2 (25%)

Reade Township: 3 (50%)

Scalp Level: 2 (100%)

South Fork: 2 (50%)

Southmont: 3 (50%)

Stonycreek Township: 74 (88%)

Summerhill Borough 4 (57%)

Summerhill Township: 1 (25%)

Susquehanna Township: 1 (33%)

Upper Yoder Township: 9 (56%)

West Carroll Township: 3 (100%)

West Taylor Township: 1 (25%)

White Township: 1 (33%)

Wilmore: 2 (20%)

Somerset County

Addison: 1 (50%)

Allegheny Township: 3 (75%)

Benson: 6 (75%)

Boswell: 2 (67%)

Confluence: 8 (36%)

Central City: 4 (50%)

Conemaugh Township: 83 (81%)

Elk Lick Township: 5 (45%)

Fairhope Township:?1 (50%)

Garrett: 15 (79%)

Greenville Township: 1 (100%)

Hooversville: 2 (75%)

Jefferson Township: 9 (64%)

Jennerstown: 2 (67%)

Jenner Township: 1 (20%)

Larimer Township:?1 (100%)

Lincoln Township:?3 (43%)

Lower Turkeyfoot Twp.:?4 (40%)

Meyersdale: 6 (38%)

Middlecreek Township: 14 (58%)

Milford Township: 1 (50%)

New Baltimore: 4 (80%)

Paint Borough: 6 (75%)

Paint Township: 8 (53%)

Quemahoning Twp.: 12 (57%)

Rockwood: 1 (50%)

Shade Township: 6 (86%)

Shanksville: 3 (100%)

Somerset Borough: 39 (74%)

Somerset Township: 19 (39%)

Southampton Twp.: 4 (44%)

Stonycreek Township: 5 (25%)

Summit Township: 12 (57%)

Upper Turkeyfoot Twp.: 1 (33%)

Ursina:?2 (33%)

Windber: 103 (82%)

___

(c)2014 The Tribune-Democrat (Johnstown, Pa.)

Visit The Tribune-Democrat (Johnstown, Pa.) at www.tribune-democrat.com

Distributed by MCT Information Services

Wordcount:  838

Older

Golden Meditech Sells 27.9% of Interest In Fortress Group Limited for US$101,264,437

Advisor News

  • The 6X Formula for leveraging content marketing with AI
  • When a home becomes difficult to insure, the plan changes
  • The inheritance gap: Helping clients plan for money that hasn’t arrived
  • After the midterms: Addressing your clients’ tax concerns
  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
More Advisor News

Annuity News

  • DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
  • John Hancock launches new fixed indexed annuity suite
  • Annuities to play a larger role in workplace retirement plans
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
  • Regulators advance shorter, streamlined annuity buyers guide
More Annuity News

Health/Employee Benefits News

  • Oscar Health Inc. (NYSE: OSCR) Draws the Stock Spotlight on Nov. 12
  • Duet Raises $15M to Scale Nurse Practitioner-Owned Clinics, Filling Critical Primary Care Gap
  • Sidecar Health Named a Finalist in the 2026 Fierce Innovation Awards
  • Open enrollment set to begin Nov. 1
  • OPINION: Imperial County’s dental care gap goes beyond insurance coverage
More Health/Employee Benefits News

Life Insurance News

  • Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
  • Military Briefs: November 12-18
  • Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
  • New Jackson Study Finds the "Sandwich Generation" Squeeze Comes from More Than Two Sides and It’s Quietly Draining Retirement Savings
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.