Louisiana is leading a coalition of 10 states suing the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security over increasing flood insurance rates. The other nine states are the PIA Western Alliance states of Montana and Idaho, and Florida, Kentucky, Mississippi, North Dakota, South Carolina, Texas and Virginia.
The suit was filed in the U.S. District Court in New Orleans.
While FEMA says under Risk Rating 2.0, flood insurance rates are capped at no more than an 18% increase per year, Louisiana’s The Times-Picayune/The New Orleans Advocate said it found the average rate increase in the state hit 134% over the previous year.
While FEMA didn’t respond to the suit, it has said the new system of premium rates is much more fair than in the past, and is much more in line with what it costs to repair or rebuild a home after flooding.
The agency says the method being used before the implementation of Risk Rating 2.0 had those with lower-valued homes and properties paying more than their fair share for insurance. It essentially subsidized people with higher-valued homes who ended up paying a lot less than their fair share.
Source link: CBS News — https://bit.ly/45NEIvG