August 27, 2014
RENO, Nev. (AP) - Nearly 1,300 federally subsidized flood insurance policies in Nevada are set to feel the sting of flood insurance rate hikes, despite a rate relief law President Barack Obama signed Friday.
The law offers instant relief for homeowners hit by premiums that soared by thousands of dollars overnight, but it allows price hikes of up to 18 percent each year for primary homeowners. Businesses and second homes getting subsidies will see premiums spike a mandatory 25 percent per year until they switch to a rate based on the actual risk of flooding.
An Associated Press review shows more than 900 homeowners in Nevada face premium increases of up to 18 percent, and 380 business and second home policy holders face 25 percent rate hikes.
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