Florida and other states fighting Biden Administration attempt to dismiss national flood insurance lawsuit
- Multiple states, including Florida and Louisiana, are opposing the Biden administration’s attempt to dismiss a lawsuit challenging changes to the National Flood Insurance Program.
- The lawsuit centers on changes known as “Risk Rating 2.0: Equity in Action,” which have led to significant increases in flood insurance premiums for policyholders.
- The plaintiffs argue that these changes were “arbitrary and capricious” and will result in economic harm, while federal officials claim they are designed to make the program more actuarially sound and fair.
Attorneys for 10 states and local government agencies in Louisiana filed a 44-page document Tuesday urging a federal judge to reject arguments that they lack legal standing to challenge the changes, which became fully effective April 1 after being phased in. U.S. Department of Justice lawyers filed a motion last month to dismiss the case.
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DeSantis "inherited already high homeowners insurance, and he inherited a market that has been fragile since Hurricane Andrew" in 1992, said Charles Nyce, a risk management and insurance professor at Florida State University. (Nyce was part of a group of Florida State professors that was hired by Citizens Property Insurance Corp., the state insurer, to write a 2020 report about strategies to halt Citizens’ growth.)
DeSantis has signed multiple bills that could lead to lower premiums in the future. For now, homeowners face the highest insurance bills.
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