Hundreds of New Jersey flood insurance policyholders will soon be facing higher premiums spurred by sweeping changes to the federal law that will take effect Tuesday.
The increases stem from legislation passed in June 2012 that requires all flood insurance policyholders to pay more into the deeply indebted system, with rates reflecting a property’s true flood risk. The higher rates will only affect properties that have federally subsidized insurance rates, which are typically older homes or houses that have the highest level of flood risk.
Nationally, 19 percent of all flood insurance policies will be affected.
But an analysis of Federal Emergency Management Agency data conducted by The Press of Atlantic City finds policyholders in New Jersey will feel a disproportionate effect of the higher rates.