The new rates will be based on several new factors, including home value and risk of flooding, rather than just elevation, according to FEMA. FALLON/AFP/Getty ImagesĪround 77% of existing policy holders will see their monthly flood insurance rates increase under the new pricing structure, according to FEMA. The agency says the new risk rating scheme will help it improve its financial solvency as flooding worsens amid the climate crisis.įlooded homes in LaPlace, Louisiana, in the aftermath of Hurricane Ida. ![]() In 2017, Congress canceled $16 billion of the NFIP’s debt to allow it to pay new claims in the aftermath of Hurricanes Harvey, Irma and Maria. The NFIP has long been riddled with debt. “Policyholders with lower-value homes that have been paying more than they should will no longer bear the cost for the policyholders with higher-value homes who have been paying less than they should,” said David Maurstad, a FEMA deputy associate administrator and the senior executive of the NFIP, in a press call with reporters last week. The agency said the changes are necessary to correct inequities entrenched in the program, which covers about 5 million policyholders. “Nobody knows how they’ve arrived at their new pricing, not even the insurance companies through which FEMA administers the program understand how FEMA has come up with what they came up.” “ ought to hide its head in a bag,” Kennedy told CNN. John Kennedy, a Republican from Louisiana, was more blunt. Ida turns New York City into a front line of extreme weather supercharged by climate change Heavy Rains in New York from Renants of Hurricane Ida, USA - Justin Lane/EPA-EFE/Shutterstock People navigate heavy rains and flooded walkways at the Billie Jean King National Tennis Center as the remnants of Hurricane Ida hit the area in Flushing Meadows, New York, USA, 01 September 2021. Mandatory Credit: Photo by JUSTIN LANE/EPA-EFE/Shutterstock (12401557i) The insurance revamp – Risk Rating 2.0 – comes after a series of devastating flood events this summer, which killed dozens of people and caused billions of dollars in damages from Louisiana to Tennessee and New York City. “You’re bringing them into a program that’s not fair.” But she’s also concerned that many people will be priced out, which could shift the financial burden on to the remaining rate payers. “The one step forward is the slightly more accurate mapping and letting more people know they’re in a flood zone,” Devecka-Rinear said. “It’s literally one step forward and five steps back,” said Amanda Devecka-Rinear, executive director of grassroots group New Jersey Organizing Project, a coalition of homeowners impacted by Superstorm Sandy in 2012. One homeowner on the New Jersey shore told CNN she thinks the new changes could be disastrous for homeowners. The changes to the National Flood Insurance Program mean than three-fourths of existing policyholders will see higher flood insurance bills, as climate change increases the threat of flooding from storm surge, extreme rainfall and river flooding across the country. ![]() Homeowners in flood-prone areas are bracing for rising insurance rates as the Federal Emergency Management Agency launches a revamp of its flood insurance program.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |