Below is a press release from Senators
Nearly 8-in-10 NFIP Policyholders Face Premium Increases, Prompting Concerns 20% Could Drop Coverage
Wicker and Hyde-Smith signed a bipartisan letter to FEMA Administrator
The letter expresses support for more accurate rating methodologies to improve NFIP solvency, but warns that moving forward with Risk Rating 2.0 will not only increase premiums on nearly 8-in-10 NFIP policyholders, but also prompt an estimated 900,000 policyholders to drop their coverage.
"We are extremely concerned about the administration's decision to proceed forward with the implementation of this program without first determining an alternative that avoids the prospect that hundreds of thousands of families will be inclined to forfeit flood insurance on their homes," the Senators wrote.
"This unwillingness to alter the current proposal and the potential for having a significant increase in uninsured homeowners leaves
The letter criticizes
"We are troubled that
Read a copy of the letter here and below.
Dear Administrator Criswell,
We write to urgently request that you delay the new
It is our understanding that internal analysis shows that
The actuarial premiums that homeowners will see once Risk Rating 2.0 is fully implemented are much higher than what
We are entering the height of hurricane season, and tens of thousands of Americans have already faced destruction of their homes and livelihoods by Hurricane Ida alone. Tragically, this historic storm led to at least 84 deaths and caused tens of billions in unmet needs and property damage. Flood providers are currently inundated with processing flood claims. With
To make matters worse,
In addition, we still have questions and have yet to receive information related to how Risk Rating 2.0 will evaluate and account for levees. States that invested in levees should have that mitigating risk factor taken into account when calculating premiums for homes and small businesses. We hope that
Given these uncertainties, we request that you delay implementation of Risk Rating 2.0 immediately in order to provide time for full Congressional oversight, coordination and correct and transparent implementation.
Thank you for your attention to this matter.