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.

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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

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