Sen. Cassidy speaks on Nationwide Flood Insurance coverage Program, Threat Ranking

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Lake Charles, LA (KPLC) – Tuesday, Senator Invoice Cassidy took the Senate flooring to speak about catastrophe help, the Nationwide Flood Insurance coverage Program and Threat Ranking 2.0.

Sen. Invoice Cassidy known as for lawmakers to cross the Supplemental Catastrophe Help Invoice.

“Go the invoice for the individuals of Lake Charles. Go the invoice for the individuals of Terrebonne, Lafourche parishes, and Southeast Louisiana. Go the invoice for the individuals impacted by Ida within the northeast. Go the invoice for the individuals impacted by wildfires within the west.” Cassidy mentioned.

He additionally took the chance to handle flood insurance coverage right this moment, particularly the N.F.I.P. and Threat Ranking 2.0.

“In mild of those storms, I have to converse concerning the Nationwide Flood Insurance coverage Program, or NFIP, which is ready to roll out Threat Ranking 2.0 in October, Oct. 1, whereas many coverage holders are nonetheless recovering from hurricane injury,” Cassidy mentioned.

The N.F.I.P. is presently set to run out on the finish of the month. Cassidy is requesting or not it’s prolonged for an additional 12 months.

Threat Ranking 2.0 is a brand new pricing methodology from FEMA, which mentioned the charges would precisely replicate flood danger.

“In Louisiana, 80 p.c of coverage holders will see will increase within the first 12 months. For some, premiums might turn into unaffordable and will collapse the worth of their dwelling,” Cassidy mentioned.

Threat Ranking 2.0 may exponentially spike flood insurance coverage insurance policies for individuals throughout the U.S. and impact a big portion of Louisiana. Particularly, FEMA says that 10 p.c of Louisiana flood insurance coverage insurance policies may see a rise of $120 or extra.

Cassidy is requesting that the Threat Ranking 2.0 be postponed till subsequent spring or thrown out all collectively.

“On the finish of the day, flood insurance coverage have to be inexpensive for the home-owner, accessible for the home-owner, accountable to the taxpayer and sustainable,” Cassidy mentioned.

If Threat Ranking 2.0 does transfer ahead, this system can be rolled out in two elements. First, new coverage holders would see completely different charges beginning Oct. 1. The second section would have an effect on present coverage holders renewing on or after April 1, 2022.

Senator John Kennedy can also be supporting the extension of the N.F.I.P. and mentioned in a press launch on Sept. 13:

“Louisiana households want the NFIP to rebuild their properties and companies after harmful floods. The wreckage from Hurricane Ida is a strong reminder of simply how a lot Louisianians, and households all through the nation, desperately rely on flood insurance coverage to guard their biggest investments. It’s very important that we lengthen this program by one other 12 months as Tropical Storm Nicholas is anticipated to carry important flooding on the heels of Hurricane Ida.”

In a press launch on Aug. 5, Senator Kennedy went extra in depth concerning the information and figures that might include Threat Ranking 2.0:

“The NFIP was based on the precept of capturing danger whereas making certain this system stays inexpensive for policyholders. FEMA’s reality sheets on RR 2.0 state that 3.8 million People will see a rise of their coverage, as much as $240 per 12 months. Not solely that, FEMA will proceed to lift premium charges by 18% till a policyholder’s premium mirrors their ‘true risk-based premium.’ I’m deeply involved that flood insurance coverage will turn into unaffordable below your proposal. . . . Your actions to roll out RR 2.0 will affect dwelling gross sales, industrial property values, and actual property commissions all throughout this nation.”

Kennedy continued, sharing an identical concern with Cassidy, that RR 2.0 would make it troublesome, and even not possible, for some Louisiana residents to pay their flood insurance coverage:

“I’m deeply involved concerning the affordability of flood insurance coverage below the RR 2.0 proposal. This proposal will considerably elevate premiums for policyholders in Louisiana.”

CLICK HERE for extra info on Threat Ranking 2.0.

FEMA additionally provides a breakdown by state, county, or zip code for individuals to see an estimate of what their coverage will change to. To view the charges extra in depth, CLICK HERE.

To view how Threat Ranking 2.0 will impact Louisiana particularly, CLICK HERE.

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