![]() ![]() “Policyholders with lower-valued homes may have been paying more than their share of the risk while policyholders with higher-valued homes may have been paying less than their share of the risk,” the agency said. In addition, it will depress property values, particularly in areas where flood insurance is required.”īut FEMA said on its website that the revamped system takes into account more variables that affect flooding and will result in rates “that are actuarially sound, equitable, easier to understand and better reflect a property’s flood risk.” Also, for example, it said the previous system did not account for the costs of rebuilding homes. “While the agency (Federal Emergency Management Agency) paints a picture of nuanced calculations using massive data repositories that reveal a property’s individualized risks, the reality is much simpler: Flood insurance is going to be much more expensive for pretty much everybody,” the lawsuit said.Ī section of the lawsuit that focused on Florida said “high insurance rates will cause people to leave the state of Florida because they can no longer afford to live in the state. Among other things, the lawsuit alleges the system improperly considers “hypothetical” future risks and doesn’t properly account for mitigation projects to protect properties from flood damage. Louisiana, Florida and the other states are challenging the new system, known as “Risk Rating 2.0: Equity in Action,” that changed the methodology for determining flood-insurance prices. A document in the lawsuit said the program includes about 1.391 million Florida policies, with total coverage of nearly $367 billion. The program plays a major role for Florida residents, many of whom are required to have flood insurance because of home mortgages. It came after the program changes, which were phased in starting in 2021, became fully effective April 1. The lawsuit, led by Louisiana Attorney General Jeff Landry, was filed Thursday in the federal Eastern District of Louisiana against defendants including the Federal Emergency Management Agency. Florida has joined nine other states in a federal lawsuit challenging an overhaul of the National Flood Insurance Program, arguing the new system is flawed and will drive up premiums for many property owners.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |