DES MOINES, Iowa -- Danita Burbank's two-bedroom Fort Dodge home has a backyard view of the Des Moines River, and it hasn't flooded in the nearly 15 years she's lived there.
"I like the location. I like being away from town. Anybody who lives out by water, it's usually because they love being by the water, the wildlife, things like that," she said.
When the area's flood maps changed and her mortgage company told her in 2012 that she was in a flood zone and needed insurance, she bought a federally subsidized policy for $729 a year. But a 2012 law that was intended to help the National Flood Insurance Program cut into its $24 billion debt left Burbank and thousands of other Iowa homeowners and business owners facing possibly crippling increases in premiums.
In Burbank's case, her premium would have jumped to $4,123 a year. But because of a vigorous public outcry, Congress approved legislation earlier this month that rolls back the increases. The premium hikes are still coming, at a rate of up to 18 percent a year for the foreseeable future. President Barack Obama signed the bill into law Friday.
Burbank, who had been facing a 575 percent increase in her premiums, said U.S. Sen. Charles Grassley's office has encouraged her to look into how the new law could help her, because she may get some money back. She will still face the up to 18 percent annual increases for homeowners, which will be collected until the government can pay out claims. Owners of businesses and second homes face increases of 25 percent each year.
According to Federal Emergency Management Agency records analyzed by The Associated Press, Iowa had 16,104 flood insurance policies in force as of Dec. 31, representing $2.89 billion in coverage and $14 million in premiums paid by insured property owners.
More than 4,500 are subject to the up to 18 percent annual increase, with Davenport leading the state with 481, followed by Waverly with 252. Bettendorf, Sioux City and Iowa City round out the top five.
More than 1,800 policyholders on non-primary residences and businesses face the mandatory 25 percent increase each year. Davenport again leads the state with 141 of these properties, followed by Cedar Rapids, Council Bluffs, Cedar Falls and Hamburg.
For many homeowners, the insurance premium costs reduce their home's resale value. Julie Tallman, a certified flood plain manager and the development regulations specialist for Iowa City, says that's where many Iowans will see an impact.
"It's the homes for sale in the flood plain, that's really the property I can think of where the premiums are going through the roof when there's any new buyer," she said. "Sellers are having a terrible time getting it sold. Those folks are hurting a lot."
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