FEMA is updating the National Flood Insurance Program’s (“NFIP”) risk rating algorithms. This will be done through the implementation of a new premium pricing methodology called Risk Rating 2.0. The new methodology leverages industry best practices and technology which enables FEMA to deliver sound rates and better reflect a property’s flood risk.
FEMA’s Risk Rating 2.0 will be implemented in two phases:
Beginning October 1, 2021, new policies will be subject to the new rating methodology. Existing policyholders eligible for renewal and subject to lower premiums will be able to take advantage of immediate decreases in their premiums, based on Risk Rating 2.0.
All remaining policies renewing on or after April 1, 2022 will be subject to the new rating methodology.
Click here to read on and learn why FEMA is undertaking Risk Rating 2.0, what is changing, and what to expect regarding flood discrepancies under this new methodology.