Flood insurance policy holders were looking at some steep hikes in their premiums, but a new law signed by President Barack Obama last week put a temporary hold on those increases -- sparing thousands of policy holders in Sacramento.

Connie Perkins is a senior engineer with the City of Sacramento. She says the new law has spared most flood insurance policy holders in the city.

"We are not getting hit that bad with this act because it is only affecting less than 300 properties," Perkins said. 

The only policy holders that will pay more include those that own a second home, or a rental home in a flood zone.

Perkins says most will be able to take advantage of the new law in several ways.

"You can even grandfather your flood insurance rate back to the flood zone when your house was built," she said. 

The National Flood Insurance Program is $24 billion in debt thanks to a series of catastrophic storms that saw the agency payout more in claims than it was collecting in premiums.