Rep. Crist Blasts Unaffordable Flood Insurance Rate Hikes Under Risk Rating 2.0

WASHINGTON, Oct. 2 -- Rep. Charlie Crist, D-Florida, issued the following news release on Oct. 1, 2021:

U.S. Representative Charlie Crist (D-St. Petersburg) released a statement following the Federal Emergency Management Agency's (FEMA) implementation of the controversial Risk Rating 2.0 pricing methodology for the National Flood Insurance Program (NFIP), which goes into effect today and is expected to drastically raise flood insurance premiums on Florida homeowners.

"Floridians rely on dependable and affordable flood insurance. Yet, the unaffordable, astronomical premium hikes to the National Flood Insurance Program that FEMA began rolling out today will hurt homeowners and hurt the NFIP," said Rep. Crist. We've seen this time and time again. If families cannot afford to protect their homes from floods, it's FEMA and the taxpayers that pick up the tab in a disaster. We need more homeowners to know their risk, get covered by flood insurance, and be able to mitigate risk. But we all know that unaffordable rate hikes are counterproductive - more families will be forced to drop their coverage and fewer families will voluntarily sign up for coverage. FEMA knows this too. While I will continue to fight for long-term solutions to reform the NFIP in a way that serves homeowners first, we need to stop these rate hikes dead in their tracks."

FEMA unilaterally implemented the Risk Rating 2.0 pricing methodology in a phased-approach starting today, October 1st, for new policies, with a second phase for existing policies beginning on April 1, 2022. Steep rate hikes to NFIP premiums will occur under both phases.

Rep. Crist has been an ongoing opponent to the Risk Rating 2.0 pricing methodology, having recently sent a letter to Speaker Pelosi and Leader McCarthy urging a delay in the implementation of Risk Rating 2.0 until Congress can provide full oversight of the changes and implement appropriate affordability measures.

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September 16, 2021

To: The Honorable Nancy Pelosi, Speaker, U.S. House of Representatives, Washington, DC 20515

The Honorable Kevin McCarthy, Minority Leader, U.S. House of Representatives, Washington, DC 20515

Dear Speaker Pelosi and Minority Leader McCarthy,

We write because our constituents are in desperate need of relief from the National Flood Insurance Program (NFIP) rate hikes expected under Federal Emergency Management Agency's (FEMA) Risk Rating 2.0. While we appreciate FEMA's work to create a NFIP that establishes actuarily sound rates, we are concerned about the burden of potential double digit rate hikes on our constituents by FEMA's untested pricing methodology. Therefore, we ask you to include language delaying the unfair implementation of Risk Rating 2.0 in any piece of legislation going to the floor this month until a more robust methodology that includes a lower premium cap is in place for policy holders.

While Congress continues to debate needed affordability, fairness, and sustainable reforms to the NFIP, FEMA plans to unilaterally implement Risk Rating 2.0 in a phased approach beginning on October 1, 2021. FEMA's Risk Rating 2.0 implementation announcement earlier this year has already impacted communities we represent that are still dealing with the far-reaching economic impacts of COVID-19 and recovering from the devastation of Hurricanes Ida and Henri.

There are serious implementation questions surrounding Risk Rating 2.0. Our constituents and those involved in implementing FEMAs rate hikes need more time to get the answers they deserve. The additional burden of up to double digit rate hikes by FEMA for our constituents, especially those in low- and moderate-income communities is too much for them to bear. Massive rate changes should be subject to additional scrutiny and review by Members of Congress in a long-term reauthorization, not arbitrary FEMA deadlines. A delay in implementing Risk Rating 2.0 is needed to allow Congress time to work on a comprehensive long-term reauthorization of the NFIP.

FEMA has already previewed that nearly 80 percent of policy holders in the eight states (approximately 1,385,759 in Florida,/i 661,830 in Texas,/ii 394,757 in Louisiana,/iii 170,685 in New Jersey,/iv 155,349 in South Carolina,/v 157,316 in California,/vi 117,093 in New York,/vii and 104,145 in North Carolina,/viii that account for the largest share of NFIP policies should expect to pay a higher premium under Risk Rating 2.0. This increase is due to FEMA's new methodology as well as the existing statutory limits on rate increases.

We appreciate the hard work Chair Maxine Waters and Ranking Member Patrick McHenry have put into developing a long-term NFIP reauthorization, including efforts to recognize the pending rate hikes. Time is of the essence with FEMA's pending deadline to implement Risk Rating 2.0. We cannot accept another short-term extension of the NFIP without addressing these expected rate hikes for our constituents. We are eager to work together to implement reforms to the NFIP based on the realities experienced in the aftermath of major flooding and storms our constituents have just experienced. Thank you very much for your time and attention to our request.

View co-signers and footnotes at https://pascrell.house.gov/uploadedfiles/risk_rating_implementation_delay_letter_-_final.pdf