Why Flood Insurance Subsidies are Phasing Out

Depending on where you live, flood insurance may be required to secure a home loan. Recently, Congress has enacted a reauthorization that is aimed to gradually phase out insurance subsidies. Although this change has been wanted due to the instability of federally-backed flood insurance, it could mean that some owners will face rising insurance premiums over the next few years. The federal program has been up and down mainly due to the debt Hurricanes Katrina and Rita left owed to the U.S. Treasury. Although phasing out the subsidiaries may not be the best choice, it is better than having no flood insurance available at all. Read the full article here: http://speakingofrealestate.blogs.realtor.org/2013/06/04/why-flood-insurance-subsidies-are-phasing-out/