Flood Insurance Goes Through the Roof as FEMA Rethinks Rate Calculation

Recent comments by Secretary of Homeland Security Alejandro Mayorkas indicate that there will be additional tweaks to the current rate analysis process known as Risk Rating 2.0, which was introduced in 2021.

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These adjustments in the flood rate calculation methodology are likely a response to unexpectedly large rate increases that result when the new calculation process is employed, which has rates in Louisiana climbing by 134%, for example, whereas the rates across the US as a whole are calculated to increase 104%, which is still a extremely large average rate hike in its own right.

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You can read more about the potential new calculation considerations here.