OKLAHOMA CITY (AP) -- The Oklahoma Department of Insurance says flood insurance administered by the National Flood Insurance Program is set to increase rates for new and renewal policies effective Oct. 1.
Flood insurance is offered to homeowners, renters and business owners to protect against damages that are not covered by standard homeowners or renter insurance policies in the event of a flood.
The rate increases are part of the key provisions in the Flood Insurance Reform Act of 2012. The legislation extends NFIP until September 2017. In addition to raising rates, the legislation includes phasing out subsidies on properties with repetitive losses, allowing coverage availability for multifamily properties and minimum deductibles for flood claims.
The Federal Emergency Management Agency estimates the current average homeowner's flood insurance premium to be about $500 a year.