MONROE, La. (KTVE/KARD)—With Hurricane Beryl leaving many homes flooded in its path from Texas to the interior of the U.S. has people talking about the high cost of flood insurance. 

FEMA has a new rating system when it comes to flood insurance for homeowners and many in the insurance industry as well as those on capitol hill are worried that it will do more harm than good.

When Bob Cooper with Farm Bureau Insurance started 33 years ago the flood insurance process was completely different.

“It was a five-day waiting period.  Folks would sandbag and after that five days, it is what it is.”

Now there is a 30-day waiting period and homeowners can’t get flood insurance when there is a named storm in the gulf.  And he says we are only getting started in a season that experts anticipate to be very active.

We are only halfway into this year, and we’ve had some tremendous amount of flooding that has already taken tons of money inside of FEMA’s reserve.

BOB COOPER, FARM BUREAU INSURANCE

Homeowners in a flood zone must get insurance through FEMA’s National Flood Insurance Program.  In April of 2023 the agency revamped the system in an effort to levelized billing and called it Risk Rating 2.0.  FEMA said that two-thirds of property owners should see a decrease and for Cooper personally his flood insurance went down, but Senator Bill Cassidy (R), Louisiana, says for too many premiums have increased because of the ratings system.

BILL CASSIDY (R), LOUISIANA

Cooper says that it’s a no-win situation for many Louisianans and others in low lying areas of their states who’s monthly premium might exceed that of their mortgage.

“Sometimes the flood insurance premium will be higher than the property and casualty premium and you’re at the mercy of the government as they revise these rates yearly.”

And as folks are cleaning up from Beryl, FEMA is paying out for homes to be rebuilt in a system that might be unsustainable in the long run.

This is the fourth time since the new rating system came into effect that Cassidy has spoken on the senate floor to focus attention on rising flood insurance costs.