Louisiana Senator Bill Cassidy released a report Thursday critical of the National Flood Insurance Program’s adoption of Risk Rating 2.0.
, “The Flood Insurance Crisis: A Comprehensive Breakdown of Rising Flood Insurance Premiums,” found that the average flood insurance cost rose in every state after Risk Rating 2.0 went into effect in October 2021. NFIP premiums in Louisiana have increased by 234% over the last three years, resulting in 52,000 residents dropping their policies, the report found. Four out of five Louisiana policyholders saw a spike in their premiums.
“This report confirms what Louisiana homeowners already know—the National Flood Insurance Program is broken, said Cassidy. “We must understand the problem to properly diagnose it and address it. This report clearly lays out why flood insurance premiums are out of control, but also why there is reason to hope.”
Cassidy, an outspoken critic of Risk Rating 2.0, has repeatedly called on Congress to pass an NFIP reform package that caps premium hikes, provides mitigation efforts and simplifies the claims process.
Cassidy has called on FEMA – the administrator of the NFIP – to reevaluate its pricing methodology and focus on affordability.
“It is not just that insurance policies have become more expensive, but they have become more expensive much more quickly,” the report says. “To add insult to injury, these changes were implemented with minimal communication and transparency, which has understandably made the experience all the more frustrating for policyholders.”
Louisiana is one of 10 states suing FEMA for failing to consider skyrocketing flood insurance costs generated by Risk Rating 2.0.
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