FEMA is updating their risk rating approach and implementing a new pricing structure called Risk Rating 2.0.
New policies beginning October 1, 2021, will be subject to the new rating structure. For policies renewing on or after April 1, 2022, they too will be subject to the new rating structure.
Risk Rating 2.0 will be more accurate with more rating variables. The rating platform will now focus on more key rating metrics:
- Flood frequency
- Various flood types – river overflow, storm surge, coastal erosion, and heavy rainfall
- Distance to water source along with property characteristics (i.e., elevation and cost to rebuild)
There will be significant rate changes, both up and down, but increases “should” remain capped at 18% per year.
There will no longer be published rate tables; instead, rates are going to be determined by an algorithm within the FEMA system.
The changes are supposed to ensure rates are more accurate, more equitable, and more property-specific!
Learn more about the new rating platform here: https://www.youtube.com/watch?v=oi2g-0GfgMk&feature=emb_imp_woyt
Interested in a flood insurance quote or learning more about your risk for flood? Call us at Knight Magee Insurance 804-320-0129, for a no obligation review.