MONROE, La. (KNOE) - President Donald Trump is proposing to end federal flood insurance for new homes that are in high-risk flood areas. This is the government's way of shoring up the struggling national flood insurance program.
It wants to do several things like prevent homes built in flood plains after 2020 from getting insurance under the program. Instead, those homes could get private coverage.
Justin Underwood, a mortgage banker, said this could mean you'll have to pay more.
"Private businesses could sometimes do a better job at providing services, but at the same time it's that unknown of what can happen for our homeowners," Underwood said.
Thursday Louisiana Senator Bill Cassidy put out a statement saying his main concern is affordability and sustainability.
"You should be concerned whether or not these changes are going to effect the value of your home and whether or not you can get affordable flood insurance," Underwood said.
According to Underwood, if a homeowner makes more $41,600 a year, in Northeast Louisiana, that person could be pay more for flood insurance.
With recent natural disasters, Underwood said avoiding increase could be impossible.
"If it goes to the privatize flood program. The risks increases therefore the cost will increase to homeowners," Underwood said.
Law makers have until Dec. 8th to reauthorize the program.
Establish means-tested affordability program for policyholders earning less than 80 percent of area median income (AMI) starting in 2021
Identify and address multiple-loss properties (aka "extreme repetitive loss")
Authority to transfer between the Reserve Fund and the National Flood Insurance Fund
Increase the Reserve Fund Assessment
Phase out new NFIP policies for newly-constructed homes and commercial customers
Amend and modernize the NFIP "Part A" authorities and improve program design
Remove barriers to switching to private policy
Eliminate the Write Your Own (WYO) company non-compete clause
Eliminate "pain points" related to proof of loss
Make data available to the private market
Disclosure of flood risk before real estate transactions close
Use replacement cost value in setting rates
Distinguish between coastal and inland areas in setting rates
Address Endangered Species Act complexities with the NFIP
Study the efficacy of the mandatory purchase requirement