Sens. Rubio, Kennedy, Colleagues Urge FEMA to Explain Risk Rating 2.0 Pricing Method

WASHINGTON, July 30 -- Sen. Marco Rubio, R-Florida, issued the following news release and letter:

The Federal Emergency Management Agency's (FEMA) new flood insurance pricing methodology, called Risk Rating 2.0 went into full effect in April 2022. The new rating system is projected to increase premiums for 80 percent of homeowners and other policyholders.

U.S. Senators Marco Rubio (R-FL) John Kennedy (R-LA), and several colleagues sent a letter to David Maurstad, Senior Executive of the National Flood Insurance Program (NFIP) at FEMA requesting responses to several urgent questions about Risk Rating 2.0.

* "In five to ten years, we will start to see a sizable number of Americans who can't afford to pay for NFIP under Risk Rating 2.0 and remain in their homes. Many will drop insurance and stay in their homes.

As that scenario unfolds, we will see an increasing number of homeowners placing the financial system in greater risk than they have under the old way of setting premiums. Many won't be able to sell their homes. Without affordable insurance coverage, they will be sentenced to financial ruin."

Read the full letter here (https://www.kennedy.senate.gov/public/_cache/files/a/0/a0faa597-8af0-4b86-87a9-9deafb278f84/0C006B5D396F190EB7C9B3BC1340790D.senate-republican-letter-to-fema-maurstad.pdf).

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Original text here: https://www.rubio.senate.gov/public/index.cfm/press-releases?ID=18C30717-483F-4327-9A5D-B4A1E5AC4657