Bradley partner Heather Howell Wright was quoted in a CQ Roll Call article discussing rate hikes for National Flood Insurance Program policies.
Risk Rate 2.0, a new pricing methodology launched Oct. 1 by the Federal Emergency Management Agency, has generated criticism and made members of Congress from coastal states cautiously optimistic they may finally break the deadlock that has prevented a major overhaul of the National Flood Insurance Program.
Wright said she has concerns about the impact of Risk Rating 2.0 increases on lower-income coastal property owners. However, she added those leaving the program are likely to live in the highest-risk areas, which could lead to a reduction in claims.
“If you are going to take the greater amount of claims out of the pot, why does it matter if you put in less (in premiums)?” Howell asked.
The original article, “Advocates say rising rates could prompt changes in federal flood insurance,” appeared in CQ Roll Call on December 15, 2021.