U.S. Senator Bill Cassidy has released a report detailing the current challenges faced by the National Flood Insurance Program (NFIP). The report outlines how historical developments have led to rising premiums, affecting millions of homeowners across the nation.
"This report confirms what Louisiana homeowners already know—the National Flood Insurance Program is broken," said Dr. Cassidy. He emphasized the importance of understanding and addressing these issues to find a solution. "This report clearly lays out why flood insurance premiums are out of control, but also why there is reason to hope."
For over five decades, NFIP has been a vital resource for affordable flood insurance in many communities. However, recent changes in FEMA's risk assessment program, Risk Rating 2.0, have significantly increased insurance costs, particularly impacting Louisianans who rely on NFIP as their primary flood insurance option. According to Cassidy’s findings, this new system not only makes insurance unaffordable but also jeopardizes the program's financial stability and contradicts Congressional intent.
Earlier this year, at Cassidy's request, the U.S. Senate Banking Committee held a hearing on NFIP that highlighted the urgent need for legislative action. A Louisiana witness provided testimony during this session.
Cassidy has actively engaged with community leaders and advocates through roundtables hosted by GNO, Inc., and the Coalition for Sustainable Flood Insurance before introducing related legislation. His visit to St. Bernard Parish last year further informed his advocacy efforts and resulted in an episode of his series "Bill on the Hill."
In recent months, Cassidy has addressed Congress multiple times regarding NFIP's reauthorization and reform needs as its authorization was set to expire at the end of September.
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