The threat of looming flood insurance hikes has many in Galveston, Texas, worried that they may be forced off the Gulf Coast.
Federal law passed last year to eliminate the National Flood Insurance Program’s multibillion-dollar shortfall will result in higher premiums for many homeowners. In Galveston, a city councilwoman tells the Houston Chronicle that some people could see premiums that are three to four times what they’re currently paying.
Real estate agents and city officials predict middle- and lower-income families could be driven out of Galveston because they won’t be able to afford living there or sell homes that are suddenly much more expensive.
Already, one agent reports potential buyers are waiting to see how high insurance rates go.
Business owners also worry about the impact on their budgets.
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