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Spike in Flood Insurance Premiums Hits Roseau Hard

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.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Bob Brellenthin of Pahlen Realty stands at a bridge crossing the Roseau River in Roseau, Minn. on Thursday, March 20, 2014.
Photo: AP/Bruce Crummy

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