Department of Homeland Security Secretary Alejandro Mayorkas says the National Flood Insurance Program (NFIP) reforming Risk Rating 2.0 — itself — needs reforming. In some circles — like most of the Gulf states and states along the East coast — the reforms have been very unpopular.
Many in Congress — from both parties — are demanding that the NFIP managing Federal Emergency Management Agency (FEMA) explain in better detail just now the variables that set pricing are selected.
Mayorkas and the Department of Homeland Security oversee FEMA. He thinks some tweaking of the rules is in order. In the meantime, his agency will give out some grants to help businesses in coastal areas with their payments.
“We are reviewing our grant programs to ensure that again they leave no community disenfranchised … We are reviewing and need to continue to review the Risk Rating 2.0 given the concerns that have been expressed,” Mayorkas said.
It’s a big problem. One example Mayorkas heard in a recent congressional hearing was about Louisiana. Some single-family homes will see a 134% rate hike that will be phased in over a few years. While it is a few years, that is a huge increase.
The average — by the way — is 104%.
Source link: Insurance Business America — https://bit.ly/3oJgeCL
Source link: The Times-Picayune — https://bit.ly/3V4fhko
