SE North Carolina News

Congressman David Rouzer (R-N.C.) joined House Committee on Oversight and Accountability Chairman James Comer (R-Ky.), Republican Majority Leader Steve Scalise (R-La.) and a bipartisan group of lawmakers to investigate the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) after recent reports show that for nearly four million Americans the Risk Rating 2.0 version of the program has caused premiums to increase, causing flood insurance to be unattainable for many. 

In a letter to FEMA Administrator Deanne Criswell, the lawmakers are requesting certain documents and information in addition to a staff-level briefing on the effects of the increases on all aspects of the various marketplaces such as the housing market.

“The Committee on Oversight and Accountability along with various congressional delegations are conducting oversight of the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP). Media reports show that for nearly four million Americans the Risk Rating 2.0 version of the program has caused premiums to increase, causing flood insurance to be unattainable for many. The process leading to the rate increases has been less than transparent. Congress has an obligation to ensure that the U.S. flood insurance market is stable and affordable for all Americans and particularly those on a fixed income. To understand the premium calculations and the overall marketplace, we request certain documents and information. Additionally, we request a staff-level briefing as soon as possible on the effects of the increases on all aspects of the various marketplaces such as the housing market,” wrote the lawmakers.

FEMA’s new methodology for determining risk and therefore policyholder premiums has accelerated homeowners simply giving up and dropping their policies. The new premium calculations are purportedly based on risk calculations. However, those affected by the new rates report little to no transparency into the input data utilized by FEMA for setting rating factors and premiums. In many instances, individual households’ rates have more than doubled since the launch of the new Risk Rating 2.0. 

“It is concerning if mispriced flood insurance based on inaccurate data is causing massive increases in premium rates and a rapid decline in the number of NFIP policies nationwide. Members of Congress on both sides of the aisle are united in ensuring affordability of the NFIP and the sustainability of this program,” continued the lawmakers.

Read the letter to Administrator Criswell here.

Original source can be found here.