U.S. Sen. Roger Wicker (R-MS) on March 28 cosponsored legislation that would permit National Flood Insurance Program (NFIP) policyholders to retain existing premium rates until the Federal Emergency Management Agency (FEMA) implements its new NFIP premium rate structure.
The Homeowner Flood Insurance Transparency and Protection Act, S. 3934, which Sen. Wicker cosponsored alongside bill sponsor U.S. Sen. Cindy Hyde-Smith (R-MS) and fellow original cosponsor U.S. Sen. Bill Cassidy (R-LA), would allow NFIP policyholders to retain their existing premium rates rather than being forced into new NFIP Risk Rating 2.0 rates, a pricing overhaul being implemented by FEMA that’s set to go into effect nationwide on April 1, according to the lawmakers.
“Many Mississippi communities are at risk of flooding and rely on the National Flood Insurance Program as a lifeline,” Sen. Wicker said. “I have heard from residents across the state that they are concerned about rising flood insurance premium rates under FEMA’s new Risk Rating 2.0 system. Mississippians should not be penalized with high insurance rates calculated under FEMA’s bureaucratic process.”
He added that S. 3934 “would provide the transparency our state needs to see from FEMA.”
The bill is also intended to force FEMA to address concerns that it developed its new NFIP rates without adhering to several statutes that require public notice and comment, an established policyholder premium appeals process, and an economic impact analysis, among others, the lawmakers said.
“FEMA is charging full force to impose Risk Rating 2.0 no matter the consequences,” said Sen. Hyde-Smith. “This legislation would protect homeowners and the overall health of the NFIP while FEMA responds to outstanding bipartisan concerns and questions about the methodology and rollout of this program.”
The legislation has been referred for consideration to the U.S. Senate Banking, Housing, and Urban Affairs Committee.