PROVIDENCE, R.I. (AP) — Nearly 7,000 Rhode Island homeowners are facing increases in their flood insurance premiums as the federal government reduces subsidies to the program.
The number comes from an Associated Press analysis of the National Flood Insurance Program.
Legislation signed by President Barack Obama on Friday would limit the increases to 18 percent annually for the owners of primary homes. Owners of businesses and vacation homes would pay a mandatory 25 percent annual increase.
U.S. Sen. Jack Reed says the law is good news for residents struggling to pay higher insurance premiums, but that Congress must find a way to make the program work over the long-term.
Reed’s office says that the National Flood Insurance Program has paid out more than $117 million in claims in Rhode Island since 1978.