NEW BERN - Flood insurance rates are rising in Eastern North Carolina and some homeowners are feared to see huge spikes in their premium.
In legislation called the Biggert Waters Flood Insurance Reform Act of 2012, congress is trying to make national flood insurance financially stable. New insurance rates will reflect what the Federal Emergency Management Agency is calling "True risk."
Rates for flood insurance increased in January and October for homeowners of secondary homes, properties with repeated flooding, and businesses. Rates for grandfathered policies are expected in 2014.
It's unknown how much each increase will be, but a fact sheet for the impact of the changes sites increases of 20% or 25% per year for what could be more than five years.
According to FEMA, only 20 percent of policies will receive subsidies.
An organization called NC-20 is getting involved.
"What we're asking the governor and lawmakers is to get involved in this issue," said Tom Thompson, Chairman of NC-20. "We want them to join the ranks of people complaining to congress that this was a hastily drawn bill."
Thompson said the bill will negatively effect a number of people in North Carolina, and not just homeowners.
"People ought to be really worried about it because even if your home isn't affected, if you're living in a coastal town and all of the sudden some of your homes become worthless, that means your tax base goes down," said Thompson.