10 States Sue the Biden Administration Over High Flood Insurance Rates: Kiplinger Economic Forecasts
States like Florida and Louisiana are pushing back against a 100% spike in rates.
An April 2023 FEMA risk rating raised U.S. flood insurance rates, and some affected states are pushing back. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
At least 10 states are challenging higher federal flood insurance rates. The list: Florida, Idaho, Kentucky, Louisiana, Mississippi, Montana, North Dakota, South Carolina, Texas and Virginia. Along with dozens of municipalities, they are suing the Biden administration over the Federal Emergency Management Agency’s Risk Rating 2.0 pricing plan, which went into effect in April.
Rate increases will average more than 100% in such coastal states as Florida and Louisiana, where certain floodprone parishes in the states will see average rates go up more than 500%. According to FEMA, the cost of flood insurance has risen for more than half of policies across the U.S.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The plaintiffs warn of major distortions to local real estate markets and other effects, saying some people won’t be able to afford to stay in their homes.
The average cost of flood insurance is expected to be $1,808 per policy with Risk Rating 2.0, compared with $888 per policy before the program, though federal law limits how fast these increases will occur, with some exceptions.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
- Why You Need Flood Coverage
- How to Deal With Property Insurance Claims After Storms
- 10 Things to Know About Hurricane Insurance Claims
- The Most Expensive Natural Disasters in U.S. History
- Looking to Relocate? Plan for Climate Change
- Is Your Home as Protected as You Think? It’s Time for a Policy Review
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
Costco Auto Program: Up to $2K off Hybrid and Electric Car Models
Costco members can get up to $2,000 off new models of Volvo, Chevrolet, Cadillac and Polestar brand cars.
By Ellen Kennedy Published
-
Six of the Worst Assets to Inherit
inheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
By David Rodeck Published
-
Tax Tips for Transferring Excess 529 Plan Funds to Roth IRAs: The Tax Letter
The Tax Letter 529 plans can help blunt the cost of paying for college. But if you want to use leftover funds there are some tax tips to bear in mind.
By Joy Taylor Published
-
When's the Best Time to Buy a Domestic Flight? The Kiplinger Letter
The Kiplinger Letter A new study by CheapAir.com has crunched the numbers.
By Sean Lengell Published
-
Woes Continue for Banking Sector: The Kiplinger Letter
The Kiplinger Letter Regional bank stocks were hammered recently after news of New York Community Bank’s big fourth-quarter loss.
By Rodrigo Sermeño Published
-
How to Report QCDs on Your Tax Return: The Tax Letter
The Tax Letter Qualified charitable distributions, otherwise known as QCDs, can be tricky when it comes to tax reporting. We've got some pointers to help with filing.
By Joy Taylor Published
-
Anxious Flyers Take Note: The Kiplinger Letter
The Kiplinger Letter Whether it's the routes to avoid that have the most turbulence or the safest airline, we've got you covered.
By Sean Lengell Published
-
The Auto Industry Outlook for 2024
The Kiplinger Letter Here's what to expect in the auto industry this year. If you’re in the market for a car it won’t be quite as daunting as it was during the pandemic and after.
By David Payne Published
-
Two More Travel Trends for 2024: The Kiplinger Letter
The Kiplinger Letter As the world gets moving again, two more travel trends to consider: Solo cruising and airline passengers with loaded guns.
By Sean Lengell Published
-
Three Travel Trends Will Drive the Industry This Year: The Kiplinger Letter
The Kiplinger Letter New travel trends like set-jetting, destination “dupes” and tour traveling will propel the travel industry in 2024.
By Sean Lengell Published