May 24—A Louisiana lawmaker is calling on the Biden administration to halt a major change to the nation's flood insurance program that could increase costs for thousands of
"As best I can tell, about 80% of the people in my state who have to have flood insurance are going to see their rates go up,"
Risk Rating 2.0 guidelines cape rate increases at 18% a year.
Kennedy said he's concerned the cost hikes are deceptive.
Prices can vary greatly depending on your risk. In
For years, critics have sought to end or curb taxpayer subsidies they say keep policies' costs artificially low and encourage people to build and live in harm's way.
"The new pricing methodology is the right thing to do,"
The program now calculates a policyholder's cost mainly by relying on elevation maps to determine a person's risk of flooding from a 100-year storm. That equates to a 26% chance a home will flood during the life of a typical 30-year mortgage.
Risk Rating 2.0 instead uses a variety of data from science agencies, the insurance industry and others to calculate a home's risk. That includes an area's history of storms, the probability of inland flooding, land elevation, natural barriers to storm surges and tides, coastal erosion and the cost to rebuild.
"The system we've used to calculate flood risk, and in turn insurance policy premiums, no longer holds water,"
"The science is clear that climate change is causing sea levels to rise, making hurricanes more destructive and increasing extreme rainfall," Dahl said. "We also know that for far too long, neighborhoods and homes that have historically fallen outside of
But local officials and others have long countered that the push to bring costs more in line with the actual risk of flooding will make insurance unaffordable for almost everyone in places like coastal
"However, because of the geographic factors that influence the cost of flood insurance, some states are more likely to see the highest increases," the company notes. "In fact, more than 10,000 policies each in
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