Mich. homeowners dread flood insurance rate hikes - WNEM TV 5

Mich. homeowners dread flood insurance rate hikes

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DEARBORN HEIGHTS, Mich. (AP) -

Thousands of homeowners in Michigan face soaring premiums as the federal government moves toward ending a decades-old insurance subsidy program.

About 11,500 policies for primary residences under the National Flood Insurance Program could see premium increases up to 18 percent per year, while another 2,600 business and vacation home premiums will soar to 25 percent annually.

The program that made low-priced insurance policies available for houses built before 1975 in flood-prone areas is $24 billion in debt.

Some local officials worry that any increase in the premiums will break the bank and possibly force some homeowners to move.

A family in Dearborn Heights bought their home 22 years ago and paid $300 a year for insurance back then. It's up to $800 even before the upcoming premium increases.

Copyright 2014 Associated Press. All rights reserved.

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