Bill Would Increase Transparency for Nat’l Flood Insurance

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(TNS) — U.S. Rep. Matt Cartwright on Friday will introduce the National Flood Insurance Premium Transparency Act to empower homeowners to better understand — and mitigate — rising premiums under the Federal Emergency Management Agency’s newly implemented Risk Rating 2.0 program.

In October 2021, Cartwright said the Federal Emergency Management Agency (FEMA) instituted a new policy premium pricing system — known as Risk Rating 2.0 — for National Flood Insurance Program (NFIP) policyholders.

“By reducing inequities and better assessing a specific property’s flood risk, NFIP policyholders were meant to pay a more accurate premium under this new system,” said Cartwright, D-Moosic.

When FEMA rolled out this new policy in April of 2023, however, Cartwright said FEMA’s updates to flood maps across Northeastern Pennsylvania — and the nation — expanded the number of homeowners now required to buy flood insurance and increased premiums for existing NFIP policyholders.

“Risk Rating 2.0 has left many Northeastern Pennsylvania homeowners in the dark, wondering why their premiums are going up and what they can do about it,” Cartwright said. “My bill would ensure that the flood insurance rating process is significantly more transparent, which will help policyholders better understand FEMA’s new requirements, research how to lower their property’s flood risk, and protect their financial security.”

Specifically, Cartwright’s National Flood Insurance Premium Transparency Act would require:

—Insurance companies to provide NFIP policyholders with a full list of property flood risk factors on their declaration page, including available discounts and any flood insurance requirements;

—FEMA to develop an interactive flood insurance information tool. With this tool, NFIP policyholders and prospective homeowners would be able to assess their property’s flood insurance premium and risk information. Additionally, this tool would provide information as to how different mitigation options would impact a property’s premium and overall flood risk;

—The Government Accountability Office to publish a report outlining the feasibility of adding additional information to the above-mentioned flood insurance information tool.

Luzerne County Manager Romilda Crocamo voiced support of Rep. Cartwright’s bill.

“As the County Manager of Luzerne County — a county that has experienced the devastation from floods — I am proud to support Congressman Cartwright’s groundbreaking legislation aimed at promoting greater transparency in FEMA’s flood insurance requirements,” Crocamo said. “This initiative is vital for policyholders as it empowers them with the information they need to navigate the complexities of flood insurance, particularly in understanding new requirements that affect their coverage and financial security.”

Crocamo said homeowners living in flood-prone areas face constant uncertainty and the daunting risk of losing their homes to devastating floods.

“By providing clearer guidelines and resources, this legislation will help individuals research and implement effective strategies to lower their property’s flood risk,” Crocamo said. “It is crucial that these homeowners have the tools and knowledge to protect their most valued asset — their home.”

Crocamo went on to say that this legislation recognizes the financial burden that high insurance premiums can impose on families already facing the threat of natural disasters.

“By fostering a more transparent system, this legislation can alleviate some of the financial stress associated with flood insurance, ensuring that homeowners are not left to bear the brunt of exorbitant costs while trying to safeguard their homes,” Crocamo said. “Congressman Cartwright’s efforts are a beacon of hope for those who reside in flood-affected regions. By advocating for transparency and clarity, this legislation will offer residents the peace of mind they deserve, allowing them to focus on building their lives without the looming fear of financial ruin.”

Crocamo added, “With Congressman Cartwright’s leadership, together we can ensure that homeowners are equipped with the necessary knowledge and resources to protect their homes and secure their financial future against the threat of floods.”

Lackawanna County Commissioner Bill Gaughan said meetings are held regularly with municipal officials throughout Lackawanna County, and stormwater management and flood control are high on their agendas.

“We fully support Rep. Cartwright’s bill because transparent flood insurance pricing will help local policyholders understand FEMA’s new risk rating and provide information on how they can lower their premiums and mitigate flood risk,” Gaughan said.

Cartwright said this legislation is also endorsed by the Appalachian Citizens Law Center, the Association of State Floodplain Managers, the Environmental Defense Fund, the National Association of Flood and Stormwater Management Agencies, and the National Wildlife Federation.

“The National Flood Insurance Program Premium Transparency Act is a critical step forward in empowering property owners with the information they need to understand their flood risk and make informed decisions, and the Association of State Floodplain Managers (ASFPM) supports Congressman Cartwright’s effort in this area,” said Chad Berginnis, ASFPM Executive Director. “By requiring transparency in flood risk factors and offering tools to explore mitigation options, this legislation will not only enhance public awareness but also promote safer, more resilient communities and drive meaningful action in floodplain management.”

Peter Waggonner, organizer for the Coalition for Sustainable Flood Insurance (CSFI), said NFIP policyholders and CSFI members continue to question the transparency and accuracy of Risk Rating 2.0’s methodology and data sources.

“While FEMA strives to provide improved tools and resources for policyholders, the National Flood Insurance Program Premium Transparency Act is a sensible, standardized solution to ensure timely progress towards this common goal,” Waggoner said.

Rebecca Shelton, Director of Policy at the Appalachian Citizens’ Law Center, said with inland flooding disasters on the rise throughout Appalachia, “we need to do everything that we can in order to inform residents about the risks to their properties, potential mitigation strategies, and ensure that they have access to flood insurance.”

Shelton added, “The National Flood Insurance Program Premium Transparency Act begins to tackle these serious issues. Congressman Cartwright’s bill will give residents access to more information about their property, flooding and flood insurance.”