HIGHER RATES

Many homeowners in low-lying areas of Iberia, St. Martin and St. Mary parishes already pay high premiums for insurance coverage and their bottom line for protection is about to increase.

National Flood Insurance Program officials announced late last week they would raise premiums by an average of 8 percent as current customers’ policies come up for renewal.

The program has struggled with a large amount of debt since the devastating 2005 hurricane season and is raising premiums to remain viable, officials said.

Armond Schwing, vice-president of the Schwing Insurance Agency in New Iberia, which writes flood insurance policies through the National Flood Insurance Program, said flood policies in preferred areas are not extremely expensive so any increase would be nominal.

However, he said policies in “non-preferred” zones can be more costly and any rate increases will be felt by policy-holders.

Schwing said most of the city falls under the C Zone, which is the preferred zone making the coverage affordable.

He said as you travel through the parish south of U.S. 90, in the Lydia area and any dwelling on waterways, the risk of flooding increases. Many homeowners in these areas of Iberia Parish are required, if they carry a mortgage, to have flood insurance so will likely feel the impact the greatest.

Property owners in lower St. Mary Parish, including the Cypremort Point area, are facing a similar fate when they receive their next flood insurance bill.

Schwing also said the majority of St. Martin Parish is pretty safe from major flood risks but added as you move through the parish toward the Atchafalaya Basin, the risk of flooding probably increases as would the flood zone level determined by the Federal Emergency Management Agency.

Because many property owners in high-risk areas are required to carry flood insurance by mortgage companies, there were less claims filed with FEMA after last year’s hurricanes, said state Sen. Troy Hebert, D-Jeanerette, who is also the Chairman of the Senate Insurance Committee.

“You have to remember that flood policies are on top of what people have to pay for homeowners policies,” Hebert said. “Increases in those policies are tough when people are having trouble just covering expensive homeowners policies in this area. They will be taking another hit with flood insurance rates going up.”

Deductibles and residential contents coverage limits also will be increasing, program officials announced.

More information on the program and the planned increases are available at www.floodsmart.gov.