Fear Reigns As Louisiana Braces For New NFIP Rates

Try this word game, but a couple of disclaimers first: It’s not supposed to be fun, and it could have a severe effect on your property value.

‘In general, the analysis approach for leveed areas was similar to that for non-leveed areas, however the leveed area analysis relied solely on KatRisk and MDI because it was not possible to adjust the AIR and CoreLogic models based on the USACE analysis described above.’

OK, it’s not exactly a word game. It’s part of FEMA’s head-spinning explanation of how rates are being set under the biggest shake-up of the nation’s flood insurance program since it was created in the 1960s.

Few understand how the new rates that began taking effect on Friday are being calculated. But there are fears that the fallout in Louisiana, as one congressman puts it, could be something like a ‘trail of tears,’ referring to the forced displacement of Native Americans in the 19th century.

Louisiana has the highest participation rate in the flood insurance program of any state: Though less than 2% of Americans live here, 10% of policyholders in the National Flood Insurance Program call Louisiana home.