COLUMN: FEMA flood insurance rates show little or no increase
According to the
This new rating methodology is a more accurate and equitable way to determine a property's unique flood risk and the cost of repair. No longer will some policyholders be subsidizing the costs of others living in riskier areas. Further, it will provide property owners information on their full risk rates, which is critical in encouraging mitigation actions to reduce flood risk.
NFIP rates were developed 50 years ago, based on simple Base Flood Elevations and designating lines on a Flood Insurance Rate Map for Special Flood HazardAreas, seen at the time as the riskiest of locations across the country. We now know that floods don't care if your property is in or out of the mapped flood zone. Lots has changed since the NFIP's inception and Risk Rating 2.0 is seen as away to keep up with the times and reflect the true cost of homeownership. It adopts modern insurance industry technologies, practices and standards. It is a product of collaboration and science, and each property is priced individually rather than by a flood zone on an old map.
The NFIP has collected
Risk Rating 2.0 will be an important tool for educating homeowners, community leaders and policymakers about the dynamic and growing risk of flooding, from coastal storm surges and overflowing rivers to overburdened and undersized drainage systems. It offers a truer assessment of flood risk and more equitable assignment of cost that will put a laser focus on the neighborhoods and communities in each state that are most at risk while offering relief to those who have been unfairly overpaying for years.
Let's face it.
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