A bill winding its way through Congress has the potential to more than double flood insurance premiums over the next four years for owners of vacation homes and commercial properties in flood-prone areas, The Wall Street Journal reports. The proposed jump in premiums is to help ramp up finances for the National Flood Insurance Program, which is a government-run program that makes flood insurance mandatory for certain property owners in flood-prone areas. The program currently owes the Treasury Department nearly $18 billion. The increase in premiums is expected to save NFIP $4.7 billion by 2021. More than 20 percent of the home owners currently in the program receive subsidized rates. The bill would set out to gradually remove subsidies for second homes, commercial properties, and properties with a history of multiple flood damage, The Wall Street Journal reports. Some residential property owners will continue to receive the subsidies. The proposed increases under the bill would likely more than double premiums for about 44,000 policy holders, according to estimates. Those policy holders currently pay on average about $1,174 per year. The Senate is expected to consider the bill this week.

Source: "Senate Bill Would Drive Up Flood-Insurance Premiums," The Wall Street Journal