WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) released the following statement in response to information from Federal Emergency Management Agency’s (FEMA) on the implementation of Risk Rating 2.0 for the National Flood Insurance Program (NFIP).
“FEMA just announced plans to raise flood insurance on Louisianans, including on those hit by Hurricanes Laura and Delta. FEMA’s decision will harm Louisiana’s recovery. We are working with FEMA to prevent any excessive premium hikes,” said Dr. Cassidy.
Instead of focusing on mitigation to elevate those trapped in the cycle of flooding and high premiums, Risk Rating 2.0 uses a counterproductive approach of targeting homes outside of flood zones with higher insurance premium increases.
Last Congress, Cassidy introduced bipartisan legislation to reauthorize and reform NFIP. This bill included provisions to ensure no steep rate hikes from Risk Rating 2.0, which increases premiums for 80 percent of Louisiana policyholders – some by hundreds of dollars annually. Without reforms, some homeowners will be forced to drop coverage or lose their homes. Cassidy’s legislation would protect policyholders from exorbitant premium hikes by capping annual increases at nine percent.
For more information on the announcement, please visit www.FEMA.gov.