Congressman Bill Cassidy (R-La.) recently asked the head of the Federal Emergency Management Agency’s flood insurance program to visit Louisiana and meet with people who would be impacted by flood insurance premium increases.
Cassidy made the request in a letter sent to David Miller, the associate administrator of the Federal Insurance and Mitigation Administration on Tuesday. Louisiana Reps. Rodney Alexander (R), Charles Boustany (R) and Steve Scalise (R) also signed the letter.
“Louisianans are facing devastating flood insurance rate hikes,” Cassidy said. “They undermine our ability to provide the nation with affordable oil, sturdy ports and well-paying jobs. They are also irrational, with well-protected homes facing premium hikes up to 6,071 percent. FEMA needs to understand the threats that Louisiana and America face and take corrective action.
Cassidy said FEMA’s first step must be to visit his state and learn first-hand what is occurring so it can effectively address the crisis.
The letter to Miller included two examples of homes in Louisiana that would face extreme premium increases if the homes were ever sold. One homeowner pays $388 a year for $200,000 of flood coverage. The rate would surge to nearly $24,000 a year if the homeowner sold the property. Another Louisiana property with $250,000 of coverage would, in the event of a sale, see premiums rise from $633 to $28,554.
Cassidy, in addition to the letter, recently proposed an amendment to the 2014 Homeland Security Appropriations bill that would protect homeowners from proposed rate increases in the National Flood Insurance Program.