U.S. Sen. John Kennedy lately launched the Flood Insurance coverage Equity Act to cease the Biden administration from unilaterally making adjustments to the Nationwide Flood Insurance coverage Program (NFIP) that may increase premiums for Louisianians affected by flooding.
“Louisianians are nonetheless reeling from final fall’s historic storms, and it’s already hurricane season once more. The very last thing these households want is an pointless hike of their flood insurance coverage premiums,” Kennedy mentioned. “But the Biden administration is bypassing Congress to be able to increase premiums for susceptible Louisianians. Louisianians should have a say in a plan that might make their housing unaffordable in a single day. The Flood Insurance coverage Equity Act would require congressional approval earlier than the Biden administration may make any adjustments to the Nationwide Flood Insurance coverage Program.”
The Federal Emergency Administration Company (FEMA) is initiating Threat Ranking 2.0, a brand new ranking system for NFIP. Threat Ranking 2.0 is scheduled to enter impact for brand spanking new NFIP insurance policies on Oct. 1, 2021. New charges for present NFIP policyholders will go into impact on April 1, 2022. The brand new ranking system would change the best way premium charges are calculated, probably making flood insurance coverage unaffordable for Louisiana households in flood-prone areas.
The Flood Insurance coverage Equity Act would require congressional approval earlier than FEMA may make any adjustments to NFIP, together with implementing Threat Ranking 2.0. The invoice would additionally freeze premiums on the date of the invoice’s enactment till Congress agrees to vary them.
Kennedy wrote to Senate Banking Committee Chairman Sherrod Brown (D-Ohio) this April requesting a listening to to look at Threat Ranking 2.0 and lately spoke out in opposition to the brand new ranking system on the Senate flooring.