Louisiana Senator Cassidy Urges Congress to Revamp Flood Insurance

WASHINGTON, D.C. (KLFY) - Louisiana Senator Bill Cassidy is urging Congress to take immediate action to make the National Flood Insurance Program (NFIP) more affordable for homeowners.

This call becomes even more pressing, as the National Weather Service predicts an above-average hurricane season, raising concerns about the potential impact on residents in flood-prone areas.

Cassidy highlighted the serious financial burden many Americans may face due to the NFIP’s new Risk Rating 2.0 system. The NFIP’s new Risk Rating 2.0 system is designed to offer more accurate insurance rates based on individual property risk. However, Mark Friedlander, National Spokesman for the Insurance Information Institute, explained the effect of the new system. “Until that property gets to the rate level that it should be at, it potentially could see an 18% increase year over year,” Friedlander said.

While the NFIP remains the most common option for flood insurance, experts are encouraging homeowners to explore private insurance alternatives. Despite potentially higher costs, Friedlander said private insurers often offer more comprehensive coverage. “They offer more robust policies, meaning higher limits than NFIP, as well as something called loss of use or additional living expenses,” Friedlander said. “And the other advantage of the private market is many of their policies take effect quicker than NFIP.”

To help lower premium rates, Don Griffin, Department Vice President and Project Coordinator for the American Property Casualty Insurance Association (APCIA), suggested homeowners consider mitigation measures. “There are also federal grants to raise up properties that you can get and should apply for,”Griffin said. “There are ways you can build your property, so water flows through underneath it.” Despite these options, Griffin said that the Risk Rating system needs reform.

Cassidy continues to push for legislation that would provide greater stability and affordability for homeowners, warning that under the current system, premiums in Louisiana could triple.