Sharp flood insurance hikes across south Louisiana detailed in new data
The sharp increases in flood insurance rates south
Overall,
That means the current average single-family home premium in
The data includes policies for single-family homes that had transitioned to the
While that means the data remains incomplete, a significant percentage of homeowners are included, since Risk Rating 2.0 began for new policies in
The
It was unclear what percentage of homeowner policies remained outside of the data. The data includes 284,095 policies in
Louisianans are more likely to hold flood insurance policies than residents of any other state.
Local officials have long pushed for the release of the information and welcomed the disclosure, but expressed deep concern over the effect the increases will have across south
"Unfortunately, significant rate increases in communities across the country remain largely unexplained," the
"Risk Rating 2.0 not only corrects pricing inequities for close to a million policyholders living in low- and moderate-income communities, but it also positions the program for the future by making the new rating system adaptable to the challenges posed by climate change," NFIP senior executive
'American dream'
While low-lying
Some of the expected hikes are punishing. At the top of the list is
The parish, which straddles the
The parishes following
While
St. Charles Parish President
"The people who are going to be hit first are the poorer people," he said. "The people who have achieved their vision of the American dream. They got into a house, they make just enough money to provide that home for their family and live in a good school district and make those ends meet, maybe save a little bit of money."
Jewell, like other local leaders, is calling for more transparency from
'Sounding the alarm'
The new system marks the biggest change in how rates are set in the NFIP's 55-year history. It is intended to measure the flood risk of individual properties by incorporating a range of factors, including rebuilding cost, distance from water, levee strength, height of the building's first floor and ground elevation.
The data is then fed into a complex algorithm to determine a rate. Critics of the new system say that process is too opaque to allow homeowners to understand it.
The system is designed in part to stop the long-criticized practice of older, less expensive homes essentially subsidizing lower rates for pricey beachfront houses. But local officials in
Risk Rating 2.0 is meant to bring the flood insurance program more in line with private-sector practices by setting actuarially sound rates. That would help set the program on a more sustainable path, since it currently carries debt of around
Jewell said he and other parish leaders have been "sounding the alarm."
"It's going to kill southeast
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