WASHINGTON – Sen. John Kennedy (R-La.) today asked Deputy Associate Administrator for Federal Insurance and Mitigation Administration Resilience at the Federal Emergency Management Agency (FEMA) David Maurstad to answer outstanding questions on Risk Rating 2.0 (RR 2.0). The plan would raise Americans’ flood insurance rates through the National Flood Insurance Program (NFIP).
“The NFIP was founded on the principle of capturing risk while ensuring the program remains affordable for policyholders. FEMA’s fact sheets on RR 2.0 state that 3.8 million Americans will see an increase in their policy, up to $240 per year. Not only that, FEMA will continue to raise premium rates by 18% until a policyholder’s premium mirrors their ‘true risk-based premium.’ I am deeply concerned that flood insurance will become unaffordable under your proposal. . . . Your actions to roll out RR 2.0 will impact home sales, commercial property values, and real estate commissions all across this country,” wrote Kennedy.
“RR 2.0 has not had the opportunity to benefit from necessary public input, nor do I believe the public truly understands their fate under RR 2.0. Historically, any significant change to the NFIP has included participation from FEMA and Congress, and this should not stop with RR 2.0. It is incumbent on FEMA to uphold our nation’s longstanding commitment to transparent government and due process. Thorough examination is required for any program’s success,” Kennedy continued.
“I am deeply concerned about the affordability of flood insurance under the RR 2.0 proposal. This proposal will significantly raise premiums for policyholders in Louisiana,” he explained.
Kennedy detailed several questions to FEMA about RR 2.0’s transparency, affordability and efficiency and the impact the plan would have on Louisianians.
“Although FEMA has touted the proposal for RR 2.0 for several years, it remains shrouded in mystery. RR 2.0 needs to be an open and transparent process, and I ask to further discuss my concerns with you in an in-person meeting,” Kennedy concluded.
Text of the letter is available here.