LA CROSSE, WI -

Flood insurances rates are taking a big jump for home and business owners on the flood plain.

The government passed a reform act last year to end government subsidies given to new policies. The local flood plain manager says it's mostly because FEMA is going broke.

Subsidies will no longer be given to any new plans and will be phased out of current plans.

Primary homes will have subsidies phased out gradually over the next five to ten years. "You're going to see about 16% this year and next year you'll see some more and a little more the year after until you get to the full rate," said La Crosse Flood Plain Manager Doug Kerns.

However, secondary homes and businesses like Sloopy's Bar and Grill on La Crosse's northside, will be hit with 25% annual increases immediately.

The bar's owner is expecting his rate to go from about $3,400 a year to $9,800 a year. That's why he's working with the city and FEMA to get the business out of the flood plain. "Applying to FEMA to get the permission to get the surrounding property around the building, that I can control, my property, above the base flood elevation to take me out of the flood plain," said Sloopy's Owner Adam Weissenberger.

Part of Sloopy's application includes a certificate of elevation which basically says how high your property is in relation to the flood plain.

Kerns recommends everyone in the flood plain contact your insurance agent to get one as it could decrease your rate.