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81% of Flood Insurance Policyholders Will See Rate Increases, Report Says

Federal flood insurance rate rises will be spread largely evenly among rich and poor areas, according to Redfin.

Flood water surrounds a home following Tropical Storm Imelda in Fannett, Texas in September 2019. 

Flood water surrounds a home following Tropical Storm Imelda in Fannett, Texas in September 2019. 

Photographer: Sergio Flores/Bloomberg

When the Federal Emergency Management Agency rolled out a  major overhaul to its beleaguered National Flood Insurance Program last April, it promised that bigger, richer homes would bear the brunt of premium increases, while almost 90 percent of policyholders would see their costs stay stable or decrease.

But as the program goes into effect this month for existing policyholders, more than 80 percent of those homeowners are set to see rates climb and those gains will be spread largely evenly among rich and poor areas, according to a new report from the real estate firm Redfin. The report also found that “Majority-Hispanic” neighborhoods are more likely to see their flood-insurance premiums rise than any other major ethnic or racial neighborhood group, with 84% of policyholders facing increases.