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.
![A warning sign saying "flooded" in the middle of a flooded street in the rain.](https://cdn.mos.cms.futurecdn.net/CUmjHFFcvzJ3NofBmL4Uyi-415-80.jpg)
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.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
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
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Stock Market Today: Dow Outperforms After IBM Earnings
Investors also parsed a strong reading on second-quarter GDP and a dismal decline in durable goods.
By Karee Venema Published
-
Try the 6 to 1 Grocery Shopping Method to Save Time and Money
The 6 to 1 Grocery Method can help you save money, reduce waste and eat healthier.
By Erin Bendig Published
-
Car Prices Are Finally Coming Down
The Kiplinger Letter For the first time in years, it may be possible to snag a good deal on a new car.
By David Payne Published
-
QCDs Are a Tax-Smart Way for Retirees To Donate to Charity
The Tax Letter With QCDs, retirees can save on taxes by making donations from their IRAs directly to charity. Here's what you need to know about qualified charitable distributions.
By Joy Taylor Published
-
How to Beat Soaring Home and Auto Insurance Premiums
The Kiplinger Letter What’s behind the insurance price hikes, and what to do about them?
By Rodrigo Sermeño Published
-
How to Navigate an Extra-Busy Summer Travel Season
The Kiplinger Letter Tips for beating the exceptional crowds expected this year and keeping your vacation budget manageable.
By Sean Lengell 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