As climate risks rise, flood insurance costs stun US homeowners

(Context, 11 May 2023) A federal flood insurance overhaul to adjust for rising climate change risks has left Americans facing eye-popping bills.

Homeowner Tommy Becnel has never had a flood claim on his house in the hurricane-prone U.S. state of Louisiana, but his annual insurance premium is still set to rise 10-fold, to nearly $7,000, in the years ahead.

He is among thousands of homeowners facing steep flood insurance cost hikes after an overhaul in flood risk ratings by the Federal Emergency Management Agency (FEMA), partly to factor in more extreme weather linked to climate change.

Like many of those affected, Becnel thinks the new prices could deter people from insuring their property - putting their financial stability, and even their homes, in jeopardy.

"When I build over there, I will never, ever, ever, pay anybody any insurance," he said, of a plot of land he plans to develop near his modest home in Belle Chasse, a low-lying suburb near the Mississippi River outside of New Orleans.

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Context, 11 May 2023: As climate risks rise, flood insurance costs stun US homeowners