Louisiana Sen. Bill Cassidy released a report Thursday criticizing the National Flood Insurance Program’s adoption of Risk Assessment 2.0.
The report, “Flood Insurance Crisis: A Comprehensive Breakdown of Rising Flood Insurance Premiums,” finds that average flood insurance costs have increased in each state since Risk Rating 2.0 went into effect in October 2021. Ta. Louisiana’s NFIP premiums increased by 234%. According to the report, 52,000 residents have dropped their insurance over the past three years. Four out of five policyholders in Louisiana experienced an increase in their premiums.
“This report confirms what Louisiana homeowners already know: the National Flood Insurance Program is broken,” Cassidy said. To address it, we must understand the problem. This report clearly explains not only why flood insurance premiums are out of control, but also why there is reason to be hopeful. ”
Cassidy, an outspoken critic of Risk Rating 2.0, has repeatedly called on Congress to pass an NFIP reform package that would cap premium increases, provide relief and simplify the claims process.
Cassidy called on FEMA, which administers the NFIP, to reevaluate how it sets prices and focus on affordability.
“Insurance policies are not only getting more expensive, they are getting more expensive much faster,” the report said. “To add insult to injury, these changes were implemented with minimal communication and transparency, which understandably made them even more frustrating for policyholders.”
Louisiana is one of 10 states suing FEMA for failing to account for higher flood insurance costs caused by Risk Assessment 2.0.
Topics Trends Floods Louisiana
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