PORT DEPOSIT — — Pushing waterlogged belongings out the front door of her duplex, Suzy Cunningham trod over a buckle in the floorboards.
"Our porch went all to hell," she lamented as she cleaned up last month after Tropical Storm Lee. "Their ain't a floor in Port Deposit that's even."
Nor was it the first time the waters of the Susquehanna River had rushed through this Cecil County town that locals call "Port." Most of the houses built in the lowlands between the river and North Main Street show the scars of decades of flooding.
These homes have been refurbished over and over, aided in the last 40 years by inexpensive flood insurance backed by the federal government.
But now Congress is poised to change the money-losing insurance program to make premiums commensurate with the risk that homeowners take on when they live in a flood plain.
Lawmakers are aiming the revisions at coastal resort towns that can afford to protect against flooding by lifting homes or building dikes and levees.
But the legislation, which has already passed the House, would also ensnare poorer river settlements such as Port Deposit, where higher premiums could push longtime residents out of their homes.
"The people who are going to be the most affected don't have the ability to adjust," said Gerald E. Galloway Jr., a professor of engineering and public policy at the University of Maryland. "On the rivers, many of the communities don't have the same incomes [as do the coastal resorts]."
Private insurers have had little interest in providing flood coverage because they have been unable to find a way to make it profitable. Congress created the National Flood Insurance Program in 1968 to reduce emergency expenses following natural disasters.
Over the last three decades, the program has paid out more than $240 million to Maryland homeowners.
To qualify for the money, communities must steer future development away from flood-prone areas. Port Deposit has enacted rules requiring that new buildings be flood-resistant.
As a result, the living areas in the town's three newest developments, each built within feet of the river bank, were unaffected last month when Exelon opened the floodgates of the Conowingo Dam.
But "the older homes, there's not a whole lot we can do about them," said Laura Luongo, chairwoman of the town's Planning and Zoning Commission.
Historic properties such as the Cunninghams', which was built in 1900, were given a pass by Congress. Because such homes were built before the federal flood plains were officially defined, their premiums were slashed, so homeowners paid well below the real cost of insurance.
"When they started, they said, 'We're going to subsidize people who are already in the flood plain,'" Galloway said. "The idea being that over time these people would … get too wet and move out."
But over 20 percent of the homes covered by the program still qualify for the subsidized rates, according to the Congressional Budget Office. The owners of these properties typically pay 40 percent to 45 percent of the value for their insurance.
Suzy Cunningham's husband, Harvey, whose forebears have lived in Port Deposit for about 150 years, acquired the eastern half of the duplex from his family. Suzy and her adult daughter purchased the western half about nine years ago.
"Everything's ruined on the first floor," Harvey reported after he and Suzy returned home from the Lee evacuation. "The walls need to be torn out completely up to 4 feet."
Harvey renewed the flood insurance policy on his half of the structure this year for $1,081. Suzy, who has paid off her mortgage, did not buy a policy on her half because she couldn't afford the premium, she says, even though their 110-year-old home qualifies for a subsidy.
His half will be repaired. Her half will have to wait.
Suzy despaired that the wall-to-wall carpet, only a few years old, had to be torn out.
"We're going to fix it up somehow, but we don't know how," she said. "A little bit at a time."
For lawmakers focused on budget deficits, the flood insurance program makes an easy political target: It owes the U.S. Treasury about $18 billion — a result of not having enough cash on hand to pay off the catastrophic damage of Hurricane Katrina.
Lawmakers have funded the program the last few years through a series of temporary extensions, and have allowed it to lapse several times.
Having delayed changes for years, Congress now is prepared to pass a bill that would rate houses such as the Cunninghams' at their real insurance value. The legislation would raise premiums over time until they reflect the full risk.
The idea is supported by lawmakers of both parties. All eight House members from Maryland voted to approve the bill in July; a similar measures awaits a vote in the full Senate.
Stuart Mathewson, chairman of American Academy of Actuaries' flood insurance subcommittee, said Congress has finally come to the conclusion reached by private insurers at least 80 years ago.