The federal government last fall updated the way it determines flood risk, to make sure flood insurance accurately reflects the realities of living near water, especially as climate change boosts flood risks along beaches, rivers and streams. The update was dubbed Risk Rating 2.0 by the Federal Emergency Management Agency, which expected that most policyholders would see their premiums increase by less than $10 per month. But since Risk Rating 2.0 became effective, about 12,000 New Jerseyans have dropped their flood insurance. And that change is reflected nationwide, undermining the federal flood insurance system.
Now, to protect homeowners and small business owners affected by flooding, Sen. Bob Menendez (D-NJ) and Rep. Frank Pallone (D-6th) have introduced a bill in Congress that would reform the federal flood insurance program, something they say is absolutely necessary to keep properties covered and communities protected.
“We can’t afford to be unprepared when it comes to people’s homes and businesses anymore. After all, a home is often the single greatest asset that New Jerseyans will own,” said Menendez.
