New Flood Insurance Rate Renewals Begin on April 1
The second phase of the transition to the Federal Emergency Management Agency’s (FEMA) Risk Rating 2.0 begins on April 1, when home owners who currently have flood insurance will begin to see the revised rates as their policies are renewed.
As NAHBNow previously reported, FEMA is transforming the way it calculates premiums for flood insurance policies that are made available under the National Flood Insurance Program (NFIP) so that they better reflect the actual risks properties face.
Instead of relying on the Flood Insurance Rate Maps to determine a home’s risk, the new process will factor in details that are specific to each home, such as elevation, distance to flooding source and cost to rebuild. As a result, some rates will go up, and some rates will do down.