President Biden to Make Flood Insurance Affordable for Low-Income Americans

15 Jun

This year President Biden is working to make flood insurance more affordable for low-income Americans. The recently released budget outlines a new program that would make $358 million available to support the effort next year. 

This money would be used to make flood insurance affordable for low-income families all over America. The program would help low-income families pay for flood insurance as well as allow them to take additional action to prevent their properties from flooding. 

The new program would be funded within the 2022 $6 trillion budget that was recently released by the Biden administration. This program will be one of the very first times, low-income property owners have received flooding assistance from the federal government. 

Biden’s approach aims to focus on the severe flooding issues in the country as flooding becomes more common and destructive due to the alarming change in the climate. Millions of property owners in America don’t have a flood policy in place to protect their homes against flooding and as a result, face a severe financial risk if their home is flooded. 

The project is designed to lower the cost of flood insurance for low-income property owners. “This proposal is expected to increase the number of policy holders and help make obtaining and maintaining flood insurance more affordable for those who qualify [for federal aid],” said a recent FEMA press release.

The program is also designed to endorse FEMA’s restructuring of NFIP’s pricing which is called Risk Rating 2.0. FEMA’s ambition with Risk Rating 2.0 is to make premiums for flood insurance policies better reflect the genuine risk of the property being insured. 

Risk Rating 2.0 is likely to raise the cost of flood insurance for over 200,000 policyholders, along with a moderate price rise for roughly 3.7 million policies. Premiums would decrease for about 1 million policyholders according to FEMA. 

We can help you shop and compare flood insurance rates, give us a call at 888-620-1954 to easily compare prices and coverage options.

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