News briefs: flood insurance lawsuit
MT’s attorney general sues the federal government over increased flood insurance rates
Shaylee Ragar | Montana Public Radio
Montana’s attorney general has joined nine other states in suing the federal government over rate increases for national flood insurance.
The lawsuit alleges that a new method for calculating insurance premiums will “skyrocket” prices by 84% on average for policyholders. 2,170 Montana homes are insured through the program.
Attorney General Austin Knudsen argues in the suit that the new rates will negatively impact property owners, property values, and subsequently, tax revenues for the state.
The federal government said the previous methodology for calculating rates set in the 1970s, used static, outdated measures. Officials said the new methodology will more equitably and accurately spread the cost of premiums between low-value and high-value properties.
The suit was filed in federal district court in Louisiana, where some living on the coastline are seeing rate increases by as high as 500%.