Flood insurance rates likely going up for La. homeowners
BATON ROUGE - Homeowners in Louisiana are still dealing with the aftermath of Ida, but now they face another burden: rising flood insurance bills.
Senator Bill Cassidy urged President Joe Biden's administration to delay the changes but without success.
"Asking the administration to take action, to put a hold on Risk Rating 2.0 to stop the damage it will do to a family's budget. This is a bi-partisan outcry, but still, the administration refuses to do anything," Cassidy said.
Eighty percent of policyholders in Louisiana are expected to see an increase next year.
"There's an example of a person in Lake Charles who does not live in a flood zone. Pays $572 for flood insurance on a single-family home worth about $250k, the quote he's received raises his policy ten-fold to over $5,000," Cassidy explained. "It's clear that for some, premiums will become unaffordable and can collapse the value of their home."
Cassidy was among eight U.S. Senators who wrote a similar letter to FEMA's administrator, warning that 900,000 people may drop their protection during the next decade as costs increase.
"That could put the whole program into a downspin. That should be sounding off the alarm on the sustainability of the National Flood Insurance Program," Cassidy said.
The only good news: the National Flood Insurance Program is now extended through early December under the short-term continuing resolution passed on Sept. 30.
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