Cassidy working to reform flood insurance program and reduce rate increases

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Louisiana Republican Senator Bill Cassidy is working with New Jersey Democrat Senator Bob Menendez in reforming the flood insurance program and cap premium increases. Cassidy expects there will be a hearing soon in DC on their legislation.

“Our plan caps premium hikes, it provides means-tested discounts for those who have excessive hikes, we strengthen the oversight of the insurance companies, and we simplify the claims process for homeowners who are just bogged down in red tape,” said Cassidy.

Cassidy said FEMA has yet to explain the 18 percent increase and their calculations for Risk Rating 2.0.

Before premium increases were capped at nine percent annually, Cassidy said under Risk Rating 2.0 the increase can be as high as 18 percent. His proposal caps the annual maximum increase to nine percent.

“But we also give support for those people who are too poor in order to be able to afford even that,” said Cassidy.

Cassidy said he wants to help homeowners along the coast who are being priced out of remaining in their homes. He said the same problems Louisianans are facing with flood insurance are also happening in New Jersey and New York. Reduced rates, he said, would be based on need and no one would necessarily receive free coverage.

“But some people would be able to get a discounted rate. It would provide a voucher for the low-income homeowner in order that she could apply that voucher to her insurance,” said Cassidy.

Cassidy said the bipartisan Infrastructure Act is putting funds towards making areas vulnerable to natural disasters more resilient and once completed it should lower flood insurance rates.

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