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Insurance Rates Seen Rising in Flood-Prone Areas With Trump Plan

  • Reforms would more closely tie premiums to actual flood risk
  • Change could hike costs in flood-prone areas of the country
Deadly Florence Grinds Through the Carolinas As Rivers Swell
Photographer: Alex Wroblewski/Bloomberg

Flood insurance premiums could rise and property values fall in the most deluge-prone areas under a plan the Trump administration intends to roll out in coming weeks to change the way risk is calculated under the National Flood Insurance Program.

Instead of simply focusing on whether a home is inside or outside of the 100-year flood plain, the Federal Emergency Management Agency plans to use private-sector data to calculate the real flood threat for each home and set costs based on that data, according to people familiar with the effort and a briefing document obtained by Bloomberg.