Mark Ballard: New flood insurance rates may be fairer, but they are definitely more expensive [The Advocate, Baton Rouge, La.]
October 10 – The bureaucracy is not surprised Houma Republican State Rep. Tanner Mage. You face it, he says, especially when trying to find temporary shelter for the 10,000 Parish of Terrebonne families left homeless by Hurricane Ida.
“My frustration is always that you get that kind of resistance from ‘why do you live there? “” said Magee, the second leader of the Louisiana House.
“We’re not like a beach town with luxury condos,” Magee said, noting that coastal residents living in vulnerable areas work in the seafood and energy industry. “This question should be returned to those who ask it: How much do you want to pay for gasoline? How much do you want to pay for seafood?
The question “why do you live there?” »Also underlies the new Federal Emergency Management Agency methodology for calculating flood insurance premiums. Louisiana members of Congress push to postpone new 2.0 risk rating, saying 80% of policyholders will see price increases, some so significant living in the south Louisiana can become unbearable for some.
Since the 1970s, FEMA National Flood Insurance Program policy prices primarily on areas on flood maps and property elevation. The risk rating 2.0, which came into effect on October 1st, incorporates more variables such as frequency, types of flooding, storm surges and heavy precipitation.
New policies and those to be renewed will be subject to the new rating methodology from October to March. Then, the new calculations will be applied to policies to be renewed annually after April 1, which are most of them.
FEMA calls the 2.0 risk rating “a transformational leap forward” in ensuring that rate increases and decreases are more equitable. That is to say, the houses most exposed to flooding pay more, so the least pay less.
we Senator Bill Cassidy, R-Red Stick, not looking nationwide.
“It’s bad news for the south Louisiana, where the rates for almost everyone will go up, ”Cassidy said from the Senate floor Thursday. “These are middle income families and working families. These are people trying to make ends meet and all of a sudden they just can’t protect themselves.”
from New Jersey Democratic Senator Bob menendez, Cassidy’s partner in an attempt to postpone the implementation until September 30, 2022, said last week at a press conference on American parliament that the price increases would initially be manageable, but the increases would get worse every year, meaning that four years from now, flood insurance would cost twice as much as it does today.
FEMA calculates that of the 403,978 policies for single-family homes in Louisiana, 20.4% will see a decrease, 78.4% will see a monthly increase of $ 20 or less. Yet only one $ 10 increase, what would be the most is $ 240 more per year or, for me, about a third more than this year’s premium.
Cassidy lives Red Stick 70808 Postcode.
Of the 2,126 single-family homes covered in 70,808, 1,014 could expect an increase of no more than $ 10, 15 households would see up to $ 20 more and a home would see an increase in flood insurance by $ 30 per month, according to FEMA. The remaining 936 single-family home policyholders, 44% in the postal code, would see a drop in the price of premiums.
On the coast Morgan Town, 99.4%, or 2,045 of the 2,058 households in postal code 70380, would see an increase, mainly of about $ 20 per month under the risk rating 2.0. Thirteen policyholders would see their premiums drop.
As location is the mantra of real estate, so is the flood insurance debate and most of the country is not on a coastline. Many of these interior residents wonder why they should pay for the damage done to residents “who are rebuilding over and over again in the same areas.”
we representing Glenn grothman, R-Wisconsin, asked the FEMA administrator Deanne criswell during a House committee hearing on Wednesday on this specific point. “Are we making sure that the people (who) are in precarious areas that we are not rebuilding there?” He asked.
“Our new 2.0 risk rating, certainly the risk of where people are building is reflected in their insurance premium in a way that it hasn’t been before and therefore those in more areas. big risk will have a higher premium, ”Criswell replied.
Lafayette Rep. Higgins clay jumped in. He asked Criswell if she would delay implementing 2.0 “until we get answers on what that really means?”
Criswell noted that the 2.0 risk rating has already been implemented.
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