Bill Cassidy Urges End to National Flood Insurance Program's 'Risk Rating 2.0'

Concerns Over Risk Rating 2.0

• ⚠️ Senator Bill Cassidy highlights that homeowners in Louisiana, after investing tens of thousands of dollars to elevate their homes and mitigate flood risk, are still facing significantly higher flood insurance premiums under the new 'Risk Rating 2.0' system.
• 📈 Two examples show premiums increasing by approximately 1,200% and 900% after home elevation, even exceeding pre-elevation costs in some cases.
• 🎯 This new system is described as penalizing individuals who have taken proactive steps to reduce their flood risk, leading to feelings of being "ripped off."

Impact on Middle-Income Families

• 💰 The rising premiums disproportionately affect middle-income families, who are investing heavily in home elevation but seeing no corresponding decrease in insurance costs.
• 📉 Cassidy warns that under Risk Rating 2.0, about 20% of National Flood Insurance Program (NFIP) policyholders may be forced to drop coverage over the next decade due to unaffordability.
• 📉 This could trigger an "actuarial death spiral" where the program's risk pool shrinks, leading to further premium increases for those who remain enrolled.

National Scope of Flood Risk

• 🌍 Cassidy emphasizes that flood risk is not confined to coastal states like Louisiana or Florida, but is a nationwide problem affecting all 50 states.
• 🏞️ He points to examples of riverine flooding in states like Missouri, New York, Pennsylvania, and the Dakotas, illustrating that non-coastal areas are also vulnerable.
• ⚠️ Even minor flooding, such as 4 inches of water, can cause significant damage to homes, destroying carpets, flooring, and furniture, and leading to costly mold remediation.

Proposed Solution and Call to Action

• 💸 Senator Cassidy has introduced legislation proposing a 33% premium reduction for low and middle-income households through a refundable tax credit.
• 🤝 He urges colleagues to work with the Trump administration to end Risk Rating 2.0, citing a successful delay of the program in 2019 due to transparency concerns.
• ✅ The goal is to make the National Flood Insurance Program affordable, accountable, and sustainable to ensure certainty for individuals and families facing flood risks.