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Your flood insurance price may increase soon

If you already have flood insurance, you will notice a price change starting tomorrow (Friday).
If you already have flood insurance, you will notice a price change starting tomorrow (Friday).(KOTA/KEVN)
Published: Sep. 30, 2021 at 2:03 PM MDT
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RAPID CITY, S.D. (KEVN) - If you already have flood insurance, you will notice a price change starting tomorrow (Friday).

The Federal Emergency Management Agency, or FEMA, is changing its National Flood Insurance Program. Many people with flood insurance in South Dakota will see a small increase in price... but a small number of people will see a large decrease.

So 69% of policyholders will see a $10-$20 increase in price. However, about a third of policyholders will see a price decrease, some as much as $100 or more.

Whether you will be paying more or less is based on the risk of your home, meaning if you live near water, have frequent flooding or your house is expensive to replace, your home is considered at risk and your price may go up.

”The realities of climate change is that we are seeing historic floods happening much more frequently and the flood insurance program has to adjust to be able to deal with that, so the benefit is this will allow the system to be solved and some people might say it’s not fair, that a large majority of people are seeing an increase but you’re paying based on the risk of your home,” said Nick VinZant, senior research analyst at QuoteWizard by LendingTree.

He also says people who will see a decrease were probably overcharged.

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