FRANKFORT, Ky. — Ten states, including Kentucky, have filed a lawsuit against the federal government to block sharp increases in national flood insurance rates that are slated to be phased in over the coming years under new methods of calculating premiums for the National Flood Insurance Program.
The Federal Emergency Management Agency has said the new formula it began implementing in 2021 means owners of lower-cost homes will no longer be subsidizing the flood risk for pricier, waterfront properties.
But local government officials, business leaders and home owners in some flood-vulnerable areas say they are facing soaring costs in the coming years under the new program.
Kentucky's Attorney General Cameron joined nine other attorneys general in the lawsuit.
“I’m proud to oppose this egregious and unlawful rate hike, which could not come at a worse time for vulnerable Kentuckians, especially those still recovering from the devastating floods in Eastern Kentucky,” Cameron said.
FEMA has said its new National Flood Insurance Program premium system is an improvement over past methods, incorporating data that wasn’t used in the past, including scientific models and costs involved in rebuilding a home.
The agency has said the old method could result in people with lower-valued homes paying more than a fair share while those with higher-value homes pay relatively less.
Some people are seeing relatively small changes in premiums. Some are seeing lower rates under the program, which began with new policies in 2021, and with renewing policies last year. Rate increases are capped at 18% per year.
But in some communities, officials report that policy holders are facing, in the coming years, huge increases — in some cases more than 1,000 percent.
This increase comes as worries grow that climate change is fueling more severe storms and sea rise.
The lawsuit filed in federal court in New Orleans on June 1 — the first day of hurricane season — says the new system gives too little consideration of local flood mitigation efforts, such as new or beefed up levee systems, or individual property owners' efforts to make their properties more flood resilient.
Kentucky AG Cameron was joined by attorneys general from Florida, Idaho, Louisiana Mississippi, Montana, North Dakota, South Carolina, Texas, and Virginia in filing suit.
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