FEMA’s Risk Rating 2.0 Program Still Needs Work
Monday, April 24th, 2023 Legislation & Regulation PropertyDepartment of Homeland Security Secretary Alejandro Mayorkas recently announced at a congressional hearing that the new federal system for setting flood insurance premiums, Risk Rating 2.0, will require more adjustments than anticipated.
Since its implementation in 2021, members of Congress have been requesting transparency regarding the variables used in its pricing formula. Despite this, the federal government has defended Risk Rating 2.0, claiming that it aims to more effectively align premiums with individual properties’ flood risks.
However, Mayorkas stated that the Department of Homeland Security is reconsidering its approach and reviewing its grant programs to prevent disenfranchising any community.
The system has faced bipartisan opposition in Louisiana, whose lawmakers say it has left the state shortchanged, according to The New Orleans Advocate.
Mayorkas acknowledged those concerns expressed by Louisiana Congressman Troy Carter and said that the agency needs to continue reviewing Risk Rating 2.0.
According to Carter, Mayorkas’ testimony indicated that Risk Rating 2.0 is not finalized and that the formula will be reconsidered to ensure fairness and provide relief.
