Taxpayers likely to foot flood insurance costs [View All]

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http://www.news-press.com/apps/pbcs.dll/article?AID=/20050904/WEATHER01/509040388/1075

Losses from Hurricane Katrina are expected to be so sweeping the nation's flood insurance program will have to ask taxpayers for money to cover the costs.

Claims filed under the National Flood Insurance Program could run as high as $20 billion, experts said.

The program collects only $1.85 billion a year in premiums, so the balance will have to come from somewhere else.

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To cope with anticipated claims, the flood program will have to borrow money from the U.S. Treasury or get Congress to give it to them. Either way, it will need a huge influx of cash to stay afloat in coming months.

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In just four Louisiana parishes affected by flooding the insurance program has nearly 217,000 policies worth more than $32 billion in coverage.

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