Chaney files suit to stop flood insurance rate hike - WLOX.com - The News for South Mississippi

Chaney files suit to stop flood insurance rate hike

Posted: Updated:
GULFPORT, MS (WLOX) -

Mississippi's Insurance Commissioner filed a lawsuit Thursday to stop the dramatic increases coming for everyone who has flood insurance.

Insurance Commissioner Mike Chaney said the "draconian rate increases" are set to take effect Tuesday and could bankrupt many South Mississippi homeowners. He said some consumers will see rate increases higher than 3,000 percent.

The rate hikes for flood insurance are happening because of a bill passed in Congress called the Biggert-Waters Act, which was meant to shore up the troubled National Flood Insurance Program.

"In granting approval, FEMA used older Base Flood Elevation maps and then in 2009 began to change the Base Flood Elevation Maps and Zones.  This resulted in unanticipated rate increases," Chaney explained in a news release Thursday afternoon. "Many of the new Flood Elevation Maps are riddled with errors and consumers must pay for new elevation certificates to prove they are not in a flood zone."

Chaney said the National Flood Insurance Program has needed reform for a long time. 

"We know the program is deeply in debt, but it seems grossly unfair to place that burden directly on homeowners who simply followed the rules and did what was asked of them."

Chaney said several areas need to be studied by FEMA before the proposed rate hikes are implemented.

"Common sense needs to prevail," Chaney said. "The following  things should be considered - accurate elevation maps; a reasonable way for consumers to challenge maps; a reasonable phase in of actuarially sound rates after the studies are completed; voucher programs; enforcement of building codes for new construction; proper land use; the use of reinsurance; choices in deductibles and separate escrow accounts for premiums that Congress cannot raid."

View the official complaint here: http://www.mid.ms.gov/pdf/NFIP-Complaint.pdf

Copyright 2013 WLOX. All rights reserved.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Prostitution sting nets 31 arrests

    Prostitution sting nets 31 arrests

    Tuesday, April 20 2010 11:21 PM EDT2010-04-21 03:21:00 GMT
    31 people are in trouble with the law after a three day prostitution sting in Richmond. Police told NBC12 they targeted specific areas where residents and business owners complained about the illegal activity.More >>
  • Two injured Omega Protein plant workers speak out

    Two injured Omega Protein plant workers speak out

    Thursday, July 31 2014 6:54 AM EDT2014-07-31 10:54:16 GMT
    Two of the men injured in the Omega Protein explosion on Monday are speaking out about the deadly blast. In an exclusive interview with WLOX, the men describe what happened, and how they survived.More >>
    Two of the men injured in the Omega Protein explosion on Monday are speaking out about the deadly blast. In an exclusive interview with WLOX News, the men describe what happened that day, and how they survived.More >>
  • Hundreds of mourners celebrate life of Ja-Naya Thompson

    Hundreds of mourners celebrate life of Ja-Naya Thompson

    Wednesday, July 23 2014 6:54 AM EDT2014-07-23 10:54:08 GMT
    As Ja-Naya Thompson's short life was celebrated, there were a lot of tears and hugs as hundreds of people paid their respects during the visitation and the funeral service.More >>
    As Ja-Naya Thompson's short life was celebrated, there were a lot of tears and hugs as hundreds of people paid their respects during the visitation and the funeral service. People told me they went to Shiloh Missionary Baptist Church for two reasons, to mourn the loss of five year old Ja-Naya and to show support to the parents who must now face life without their beloved child.More >>
Powered by WorldNow

208 DeBuys Road
Biloxi, MS 39531
(228) 896-1313

FCC Public File
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and WLOX. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.