Policies can still be assigned to new property owner.

Statutory caps on individual annual rate increasesĪssignment of a policy to a new property owner

The max available will still be $250,000 for building / $100,000 for personal contents.

Required for Flood Zones A, AE, A1-30, AH, AO, AR, A99, V, VE, V1-30.

Requires property owners to purchase and maintain adequate flood insurance.

Still applies for properties with a federally backed mortgage located in Special Flood Hazard Areas (High-Risk Areas).

What’s Staying The Same: Mandatory Purchase Requirement

You will experience either incremental increases or decreases until you reach your Property’s “true risk rate”.

Previously, you could grandfather either your Flood Zone or Base-Flood Elevation.

Including: First floor height, ground elevation, building occupancy, construction type, foundation type, prior claims, etc.

– Urban flooding and Catastrophe modeling

Considers flooding sources other than just what’s listed on the Flood Insurance Rate Map.

New rating element for single-family residential homes & other residential building types.

Includes additional datasets sourced by the Federal Government.

Rates now calculated by using an automated algorithm.

Additional data sources used to better quantify the ‘true risk’ to a structure.

Let’s dive in to some of the differences: What’s Changing: New Pricing Methodology Please see my previous post on Flood Insurance if you need a brief overview on NFIP Polices, coverages, and limits. It’s a good time to review what’s changing and what’s staying the same for National Flood Insurance Program (NFIP) policies.

All policies that renew after 4/1/22 will be subject to the new rating method.

Renewal policies between 10/1/21 and 4/1/22 may choose either the old rating method or the new rating method, whichever rate is most competitive.

This new rating program went into effect 10/1/21 for new business policies.

The Federal Emergency Management Agency (FEMA) has made some recent updates to flood rating under their new program, “Risk Rating 2.0: Equity in Action”.

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