NJ flood insurance rates rising again; are they too much?

April 01--It's no different for 2018.

The Federal Emergency Management Agency reports flood premiums will jump about 8 percent this year.

Here are some facts about the flood premium increase:

* The average flood policy will cost $935 annually, up from $866 in 2017. That number does not include the surcharges homeowners are required to pay. When those are factored in, the average policy will cost $1,062 in 2018.

* There were 231,956 flood insurance policies in effect in New Jersey, according to FEMA, which administers the National Flood Insurance Program. The average New Jersey policy holder pays about $1,000 a year, but that number has been steadily rising.

* While the average flood policy will cost 8 percent more, some homeowners will see much larger rate increases -- up to 25 percent for vacation homes, commercial properties and homes that have had repetitive flood losses.

The National Flood Insurance Program provides flood coverage for 5 million policy holders nationwide. The video above explains how the program works.

But, at the moment, the program is in limbo.

Congress must periodically reauthorize NFIP so that flood insurance policies can continue to be issued and renewed.

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Initially set to expire Sept. 22, 2017, the program has been extended several times; it is now set to expire July 31.

NFIP is more than $25 billion in debt, and claims arising from a series of devastating storms last year -- including Hurricanes Harvey, Irma and Maria -- have put even more of a strain on the system.

No matter which flood insurance proposal Congress eventually adopts, it seems likely that premiums will continue to rise, to better reflect the cost of providing coverage.

Fewer Americans in coastal areas are paying for flood insurance than they were five years ago, according to an Associated Press analysis of government data, illustrated in the video below.

George Kasimos, a Toms River resident who founded the superstorm Sandy advocacy group Stop FEMA Now, said almost every bill that has been proposed in Congress would raise flood premiums so much that many coastal residents could be forced to sell their homes.

Stop FEMA Now has advocated for passage of a bill introduced last year by Sen. Robert Menendez, D-N.J., the Sustainable, Affordable, Fair and Efficient Flood Insurance Reauthorization Act, which would cap annual premium increases at 10 percent and increase oversight and restrictions on private insurance companies that write flood policies.

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But Menendez's bill, which was co-sponsored by three Republicans and three Democrats in the Senate, has not had a hearing in the Senate Banking Committee.

A bill supported by Rep. Thomas MacArthur, R-N.J., the 21st Century Flood Insurance Bill, passed the House last fall. The bill would provide up to $60,000 for mitigation projects, and homeowners could apply for that money before flooding occurs.

The bill caps annual premium increases at 15 percent per year, down from the 18 percent allowed now, but allows flood premiums of up to $10,000 on primary homes.

Stop FEMA Now has strongly criticized the bill, saying it would drastically raise premiums while not providing proper oversight of private insurance companies.

Jean Mikle: 732-643-4050, @jeanmikle, jmikle@gannettnj.com

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