New FEMA Risk Rating 2.0 to Determine Flood Insurance Rates
The Federal Emergency Management Agency (FEMA), which oversees and implements the National Flood Insurance Program (NFIP), has initiated a long-term effort to transform the program to make it more consumer friendly and better reflect the actual risks properties face.
Through the new framework, known as Risk Rating 2.0, FEMA intends to create a more accurate and fair calculation of structure-specific risks and improve the policy application process — efforts that it hopes will compel more home owners to purchase flood insurance.
What this will ultimately mean is that FEMA is going to reassess the factors it looks at when calculating flood insurance rates. The shift will move the NFIP from the current practice, which looks at risk across a broad band associated with flood zones and categories of properties to create an individualized picture of each property’s risk.
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For more information, contact David Glenn, Director of Government Relations at email@example.com.