While the idea behind the National Flood Insurance Program’s Risk Rating 2.0 is sound, its implementation has left something to be desired, which some Louisiana federal elected officials want and need to improve.
In the months since the implementation of the new rules that more accurately assign risk to national flood insurance, things to date have gone as predicted. While about a fifth of Louisianans who have this – which is required if living in certain high-risk areas of if a home has a mortgage – will experience a one-time rate reduction averaging $960 (about twice the total premium for the highest level of coverage in a zone considered highly unlikely to flood), about 77 percent will see an increase as much as $20 a month in perpetuity and the other three percent will see rates higher still.
Astronomically higher, in some cases. Particularly unfortunately placed properties are in line to see rates skyrocket several times their past level over the next decade, but not immediately as with a few exceptions of up to 25 percent, increases are capped at 18 percent a year over the next decade. Still, do the math, and that means at their 18 percent maximum annually rates will triple in that time span, although a premium cap of $12,125 remains in place for now, but that can be increased, as can the rate cap after the decade (the law doesn’t have one after then).