Senator Cassidy addresses rising flood insurance costs

Senator Cassidy addresses rising flood insurance costs
Senator Cassidy addresses rising flood insurance costs(kplc)
Published: Jul. 11, 2023 at 7:57 PM CDT
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Lake Charles, LA (KPLC) - Louisiana is by far the largest recipient of funds from the National Flood Insurance Program, according to FEMA.

With the sometimes unpredictable Louisiana weather, everyone is at risk of flooding. But affording flood insurance is easier said than done.

Senator Bill Cassidy addressed the rising cost today in a conference.

The average flood insurance rate in Louisiana is $750 per year, a price tag, that many say they can’t afford.

Senator Bill Cassidy discussed his National Flood Insurance Program Reform Package, and what it aims to accomplish.

“It will address out-of-control rate increases for homeowners in our state, because no matter where I go in Louisiana, I hear about the trouble people are having,” Cassidy said.

Cassidy lays out the plan.

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

With the reform package, rates will be lowered to 9 percent, but Cassidy says it doesn’t stop there.

“But we also give support for those people who are too poor in order to be able to afford even that,” Cassidy said. “Our goal is to make this affordable, accountable to the taxpayer, sustainable to society and I think we think we could do that.”

Cassidy also said FEMA’s risk rating 2.0 Flood Insurance Program is not as transparent as it should be.

“I don’t think FEMA has been forthcoming, the model itself is very complex. The fact that you have to have a sit down with them to walk through, means that it’s difficult,” Cassidy said.

The Infrastructure Investment and Jobs Act provided $3.5 billion for Flood Mitigation Assistance grants, which will reduce the risk of flood damage to buildings insured by the National Flood Insurance Program.

“I’m told that Louisiana has submitted about 50 percent of the claims for the National Flood Insurance Program,” Cassidy said. “If my numbers are right, we may end up getting $1.5 billion to help mitigate risk of flooding within our state.”