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Federal Flood Insurance Costs to Jump

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DES MOINES, Iowa (AP) - A new law will roll back the eye-popping federal flood insurance premium increases that have hit the wallets of some Iowa homeowners and business owners, but the relief may not be long-lived.

Congress passed a federal flood insurance reform act in 2012 that was aimed at reducing the government's burden in subsidizing the National Flood Insurance Program. It had policyholders paying rates based on the true flood risk of their property.

The president signed a bill Friday that softens the blow, but will still hike premiums for more than 4,500 Iowa homeowners up to 18 percent annually. Some 1,800 policyholders on second homes and businesses will face a mandatory 25 percent increase.

A Fort Dodge woman had faced a 575 percent increase, but may get some money back.

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