US flood insurance sinks homes

[TALLAHASSEE, Florida] RANGEL Dockery and her husband bought a waterfront house in Florida four months ago, assuming their US$2,000-a-year flood insurance premium would remain about the same. After reading recently about a change in the federal flood programme, they checked on next year's rates and were stunned: Their bill will grow to US$14,000 annually.

Now the elementary school teacher and her husband Clint, an information technology specialist, are considering selling their two-bedroom St Pete Beach home, probably at a loss, because she said they can't afford the bill, and their mortgage requires flood coverage.

"It was very frustrating to finally have what we've worked hard for all of our life," Ms Dockery, 52, said. "I feel like the rules were changed …