A turning tide? NYC homeowners in high-risk flood zones may soon be swimming in debt

From the May issue: The number of property owners buying flood insurance has increased significantly since Hurricane Sandy struck in 2012. Now, shifting priorities in Washington and rising coverage costs could force city homeowners to forgo flood insurance altogether or default on their mortgages if they are required to buy it.

For the past five years, the federal government has been gradually rolling back subsidies to the National Flood Insurance Program (NFIP), through which most homeowners around the country receive their coverage. This, combined with a new president who wants to cut the program by $190 million and key members of Congress calling for more private competition, has created a perfect storm of uncertainty. The current NFIP is set to expire this September, but Congress doesn’t seem close to coming up with a solution.