Bill aims to protect flood insurance policy holders from rate hike
Today, U.S. Senator Cindy Hyde-Smith introduced a bill to protect flood insurance policyholders.
On Friday, a new rate structure for the National Flood Insurance Program takes effect.
For many people, the new NFIP ‘risk rating 2.0’ system will mean higher rates.
Hyde-Smith’s bill would allow NFIP policyholders to retain existing premium rates rather than being forced into the new rating system until FEMA meets certain accountability and transparency requirements.
In a statement, Hyde-Smith says “policyholders deserve to know how much they are going to be paying over the full course of this program and why, especially during a time of record inflation and gas prices.”
According to her office, FEMA started rolling out ‘risk rating 2.0’ in October, despite warnings it would increase premium costs for nearly 80 percent of policyholders, a move that could drive as many as 60,000 policyholders in Mississippi to cancel their flood insurance coverage.