Sen. Cruz, Colleagues Protect Flood Insurance Policyholders with the Homeowner Flood Insurance Transparency Act
WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) has cosponsored the Homeowner Flood Insurance Transparency Act, which was introduced by Sen. Cindy Hyde-Smith (R-Miss.). This legislation permits National Flood Insurance Program (NFIP) policyholders to retain their existing premium rates until the Federal Emergency Management Agency (FEMA) achieves certain transparency and accountability requirements.
The Homeowner Flood Insurance Transparency Act alleviates the burden of increasing premium rates that some flood insurance policyholders are experiencing under FEMA’s newly-implemented NFIP Risk Rating 2.0 (RR2.0).
RR2.0 was rolled out nationwide on Friday, April 1, despite warnings that the new flood insurance rate scheme could increase premium costs for many policyholders across the nation and 86 percent of policyholders in Texas.
About the bill, Sen. Cruz said:
“Many communities in Texas are at risk for and have suffered from flooding, and have turned to FEMA and the National Flood Insurance Program for assistance. Many of those Texans now face unwelcome rate hikes that have yet to be satisfactorily explained. This legislation would, at the very least, provide homeowners with transparency about FEMA’s motives for such an increase.”
The legislation is intended to protect policyholders while forcing FEMA to address concerns that it developed RR2.0 without adhering to statutes requiring:
- Public notice and comment
- Established policyholder premium appeals process
- Economic impact analysis
- Independent peer review
- Assurance of data reliability
Read the full text here.