The rising cost of flood and homeowner’s insurance is worrying more than just homeowners. Economic development interests are concerned, too.
"People's insurance costs are beginning to be greater than their monthly mortgage note," GNO Inc. President Michael Hecht told WWL's Newell Normand.
Hecht says it will drive people away, keep new people from moving in, and it extends beyond housing -- creating what he called a "fiscal death spiral."
"The loss of workforce, the loss of home ownership, leads to a loss of tax base from individuals and companies," said Hecht.
But Hecht says there's a bright side: now the head of the National Flood Insurance Program has recognized that there may need to be reform.
"The head of NFIP, David Maurstad, actually admitted to Congress that he believes that now he thinks that it does need to be reformed," Hecht said. "And so, we've got his attention. We'll probably send a letter to President Biden next, and I think the result will be some changes to make sure that people who did nothing wrong are not going to get thrown out of their homes."
Hecht is now optimistic the problem can be fixed.
