Created: 03/24/2014 6:06 AM KSTP.com
By: Jennie Olson
The nationwide flood insurance premium spike has hit Roseau, where the specter of policies that could add $400 to a monthly home payment has affected the local housing market.
Nearly the entire northwestern Minnesota city lies within a flood plain, so lenders require flood insurance. That became a problem after Congress began to wean policyholders off subsidies. Last fall, home shoppers started getting quotes up to $4,000 a year or more.
President Barack Obama signed a law Friday that puts the brakes on the 2012 overhaul, which led to the spike.
But the relief is temporary, as some 947 business- and second-home owners will face 25 percent annual increases and another. Another 2,520 home and residential building owners could see rates go up as much as 18 percent.
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