On September 20, the NFIP Premium Transparency Act was introduced in the House by Representative Matt Cartwright (D-PA), alongside five original cosponsors, including Rep. Troy Carter (D-LA).  The NFIP Premium Transparency Act – now H.R.9726 – would ensure consistency on declaration pages of each flood insurance policy issued under NFIP, while better demonstrating savings from mitigation measures.  The bill would also mandate that FEMA develop an online flood insurance information tool with respect to each property for which a flood insurance policy is issued.  This tool would provide information on the premium, replacement cost value, historical losses, and more.    Full text and a  section-by-section of the bill are available online.

Rep. Cartwright explained how this bill addresses longstanding Risk Rating 2.0 concerns: “By reducing inequities and better assessing a specific property’s flood risk, NFIP policyholders were meant to pay a more accurate premium under this new system.  Risk Rating 2.0 has left many Northeastern Pennsylvania homeowners in the dark, wondering why their premiums are going up and what they can do about it,” Cartwright said. “My bill would ensure that the flood insurance rating process is significantly more transparent, which will help policyholders better understand FEMA’s new requirements, research how to lower their property’s flood risk, and protect their financial security.”

CSFI, a supporter of the bill, affirms that “NFIP policyholders and CSFI coalition members continue to question the transparency and accuracy of Risk Rating 2.0’s methodology and data sources.  While FEMA strives to provide improved tools and resources for policyholders, the NFIP Premium Transparency Act is a sensible, standardized solution to ensure timely progress towards this common goal.  We applaud Congressman Cartwright, Congressman Carter, and colleagues for championing measures like this, which empowers constituents’ safety and ensures NFIP’s solid, sustainable future.”