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Legislation introduced to address concerns around FEMA flood insurance pricing transparency and premiums

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    Legislation introduced to address concerns around FEMA flood insurance pricing transparency and premiums

    On March 2, Sen. John Kennedy (R-La.) introduced two bills to cap flood insurance premiums and increase transparency around the Federal Emergency Management Agency’s (FEMA) new risk-rating methodology, known as Risk Rating 2.0. Additionally, Sens. Bill Cassidy, M.D. (R-La.) Cindy Hyde-Smith (R-Miss.), Ted Cruz (R-Texas) and John Kennedy (R-La.) introduced the Homeowner Flood Insurance Transparency and Protection Act which would also require FEMA to address concerns about Risk Rating 2.0.

    FEMA began its rollout of Risk Rating 2.0 in October 2021 despite warnings that it would increase premium costs for policyholders and that price increases could drive many to cancel their flood insurance coverage. Sen. Kennedy’s Risk Rating 2.0 Transparency Act would require FEMA to publish an explanation of how the agency is determining flood insurance prices under Risk Rating 2.0. Additionally, FEMA would be responsible for creating an online database for policyholders under the National Flood Insurance Program (NFIP) to provide information on premium rates. The Flood Insurance Affordability Act would lower the statutory limit on annual premium increases on primary resident homeowners under Risk Rating 2.0 from the current limit of 18 percent to 9 percent. 

    Sens. Cassidy and Smith-Hyde’s Homeowner Flood Insurance Transparency and Protection Act would allow policyholders to retain previous NFIP premium rates prior to the implementation of Risk Rating 2.0 until FEMA addresses several concerns around the development of their risk rating methodology.

    NACo has called for further transparency from FEMA about the impacts of Risk Rating 2.0 and will continue to advocate for passage of legislation that would ensure our residents are able to afford their premiums.

    On March 2, Sen. John Kennedy (R-La.) introduced two bills to cap flood insurance premiums and increase transparency around the Federal Emergency Management Agency’s new risk-rating methodology, known as Risk Rating 2.0.
    2023-03-14
    Blog
    2023-03-14
Gulf Coast Senators introduce legislation to provide more transparency on FEMA's new Risk Rating 2.0 methodology and address rising premium increases Counties call for legislation that demand clarification around FEMA’s risk rating methodology and keep flood insurance premiums affordable for residents

On March 2, Sen. John Kennedy (R-La.) introduced two bills to cap flood insurance premiums and increase transparency around the Federal Emergency Management Agency’s (FEMA) new risk-rating methodology, known as Risk Rating 2.0. Additionally, Sens. Bill Cassidy, M.D. (R-La.) Cindy Hyde-Smith (R-Miss.), Ted Cruz (R-Texas) and John Kennedy (R-La.) introduced the Homeowner Flood Insurance Transparency and Protection Act which would also require FEMA to address concerns about Risk Rating 2.0.

FEMA began its rollout of Risk Rating 2.0 in October 2021 despite warnings that it would increase premium costs for policyholders and that price increases could drive many to cancel their flood insurance coverage. Sen. Kennedy’s Risk Rating 2.0 Transparency Act would require FEMA to publish an explanation of how the agency is determining flood insurance prices under Risk Rating 2.0. Additionally, FEMA would be responsible for creating an online database for policyholders under the National Flood Insurance Program (NFIP) to provide information on premium rates. The Flood Insurance Affordability Act would lower the statutory limit on annual premium increases on primary resident homeowners under Risk Rating 2.0 from the current limit of 18 percent to 9 percent. 

Sens. Cassidy and Smith-Hyde’s Homeowner Flood Insurance Transparency and Protection Act would allow policyholders to retain previous NFIP premium rates prior to the implementation of Risk Rating 2.0 until FEMA addresses several concerns around the development of their risk rating methodology.

NACo has called for further transparency from FEMA about the impacts of Risk Rating 2.0 and will continue to advocate for passage of legislation that would ensure our residents are able to afford their premiums.

About Brett Mattson (Full Bio)

Legislative Director – Justice & Public Safety | Gulf States Counties & Parishes Caucus

Brett joined NACo in May of 2018 and serves as legislative director for justice and public safety. In this role, Brett staffs NACo’s Justice and Public Safety Policy Steering Committee and works with county officials across the country to set organizational priorities and policies for justice and public safety issues that affect counties.

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