Daily Independent (Ashland, KY)

Local News

March 24, 2014

Flood insurance still on the rise despite new law

JERSEY SHORE, Pa. — This small, central Pennsylvania river town doesn't have beach homes or boardwalks, but it shares more than a name with the famous stretch of New Jersey coastline 250 miles to the east.

Both are among the thousands of places around the U.S. where people could face trouble in the years ahead because of the rising cost of government-mandated flood insurance.

Earlier this month, Congress sought to ease their fears of sky-high premiums by rolling back a 2012 reform ending the government's costly practice of offering subsidized insurance for older homes and businesses in flood zones. The president signed the bill Friday.

But while the law was widely hailed as a victory for people who had seen their bills triple, quadruple or even increase 15-fold overnight, pocketbook pain for many has merely been delayed.

As many as 1.1 million policyholders with subsidized government insurance will still be hit with steady rate increases. While no one is sure yet how high rates will go, there is cause for worry in cities and towns that rely on affordable policies to keep businesses afloat and prop up the local housing market.

Lifelong Jersey Shore residents Lurie and Michael Portanova bought up a row of quaint, 19th-century brick shops along the West Branch Susquehanna River and have been lovingly restoring them. They found out a few months ago that the annual flood insurance premium on two buildings they bought in 2012 had soared from less than $3,000 to a minimum of $26,868.

Now, thanks to the congressional rollback, that rate will reset to where it was before — only to immediately start climbing again, year after year. Within five years, the bill will be more than $8,700. Within a decade, it will be more than $26,000.

"There's no way we can afford that. Just no way," said Michael Portanova. "We'd have to let it go back to the bank and walk away from it."

Text Only
Local News
  • Obama admin. says health subsidies will continue

    A federal appeals court delivered a potentially serious setback to President Barack Obama's health care law Tuesday, imperiling billions of dollars in subsidies for many low- and middle-income people who bought policies.

    July 22, 2014

  • State’s longest trail system turns 35

    The Sheltowee Trace was officially dedicated as part of the National Recreation Trail system in 1979. After 35 years, the trail remains Kentucky’s longest distance trail, estimated at 307 miles.
     

    July 21, 2014

  • Pancake releases new album

    The top of the Sky Tower in downtown Ashland was booming Saturday night with music from Larry Pancake’s new album “Fair Weather Friend.”
     

    July 21, 2014

  • Telephone scammer fleeces man of $5,000

    A telephone scammer claimed another area victim when a Williams Avenue man paid $5,000 after the con artist told him he had won a sweepstakes but had to pay taxes on the prize money before collecting it, according to Ashland Police Department reports.
     

    July 21, 2014

  • Murder defendant pleads guilty on lesser charge, sentenced to 8 years

    One of four charged with murder in a 2008 double killing pleaded guilty to a lesser charge Monday just before his trial was to start.

    July 21, 2014

  • MIA Rush Marine to rest in Arlington

    Finding Dottie McCoy’s uncle after 71 years was the biggest part of the struggle.

    July 21, 2014

  • Morehead gets Trail Town status

    It has been two and a half years in the making and it happens today.
    Morehead will officially be designated a Kentucky Trail Town following Dawson Springs and Livingston.

    July 21, 2014

  • Fallsburg’s traditional haunt attracts unique talents

    Brian Cassidy said there is no substitute for individual talent while tackling tasks ranging from sculpting a massive hillbilly to inventing paintball gun brackets capable of withstanding the pressures caused by an incoming zombie attack.

    July 21, 2014

  • Local in brief: 7/22/14

    The Kentucky Interagency Coordination Center on Sunday mobilized two fire crews to assist with firefighting efforts in the western United States.

    July 21, 2014

  • marine3.jpg MIA Rush Marine to rest in Arlington

    Finding Dottie McCoy’s uncle after 71 years was the biggest part of the struggle.

    July 21, 2014 3 Photos