"Rate increases of this size will be devastating to the economies of coastal communities, like
A database analysis conducted by FIRM shows
"While FEMA contends Risk Rating 2.0 will provide more accurate and transparent flood insurance pricing, this untested proposal is actually a huge, unregulated rate increase causing millions of flood policy holders to face extremely significant premium increases," Montagne said.
FIRM raised concerns that
FIRM developed its database using privacy-coded
The properties were run through the new FEMA Risk Rating 2.0 software to calculate the new and significantly higher premium rates. After two years of delays,
The details of
The new rating system will no longer use flood maps and zones or base flood elevations to determine a homeowner's premium rate. It will use a series of models that could fundamentally change a property's individual flood risk assessment and therefore its insurance premium, according to FIRM.
There will no longer be Preferred Risk Policies - those for properties in the so-called X zone- but existing PRP properties will be grandfathered in until they reach the full actuarial rate.
Data such as first floor elevation, replacement cost value, construction type, foundation type and more are determined by
FIRM has joined other concerned organizations like the
"It would be devastating for
In the meantime, Montagne encourages
County government officials also raised concerns about
Under federal statutes, NFIP annual increases are capped at 18% for primary residential properties and 25% for second homes and commercial properties. The Risk Rating 2.0 increases cannot exceed the rate caps. However, Tennyson stresses that the current annual rate caps are already unaffordable for most
"Nationwide, the average policy is about
NFIP is a federal program that must be renewed by
Risk Rating 2.0 has been done entirely at the agency level, without the input or approval of