Colorado is a state known for its diverse landscapes ranging from deserts to rivers and each presents flood risks to properties across the state. We've already covered the statewide increases and decreases in flood insurance premiums with the Risk Rating 2.0.

Today, we dive deeper into more specific territories and discuss the changes coming with the National Flood Insurance Program (NFIP) Risk Rating 2.0 to Denver, Colorado.

Colorado Flood Insurance: Denver Risk Rating 2.0 Update

Risk Rating 2.0: What Changes?

This is what FEMA calls equity in action when it comes to making the cost of flood insurance policies fairer per policyholder. This simply means that when it comes to flood insurance rates, a lot of things will start to change with the NFIP and FEMA. Generally, this is because property values for each individual property will be accounted for when finalizing your quote and flood insurance premiums with the National Flood Insurance Program (NFIP).

It's important to note, however, that this won't mean that the cheapest flood insurance will go automatically to lower-valued homes. It's equally important that we take into account, just like FEMA does and the private flood insurance industry, what's called flood risk variables which includes, but is not limited to the following:

  • Designation in the flood zone maps.
  • History of flood incidents, flood damage, and flood loss
  • Flood claims made with the property
  • Flood hazard, flood plain devolvement, and impact of flooding
  • Risk of flood in the area, the chance of flooding, and flood frequency
  • Mitigation efforts made on the property. Is the lowest floor above the base flood elevation? Are there enough flood openings to let floodwaters through?

Now that we've covered the NFIP and the Risk Rating 2.0, let's talk about its impact on Denver, Colorado. We'll cover the good, the bad, and the ugly changes coming to the residents of the city.

Colorado Flood Insurance: Denver Risk Rating 2.0 Update

The Good

When we're talking about these changes, we want to emphasize that this will solely involve flood premiums changes or updates from FEMA and the NFIP. Let's kick this off with the good changes coming to residents of Denver.

The good changes will involve an immediate decrease in flood premiums with FEMA. This decrease can go up to more than $100 (>$1200 per year) and will impact 46.8% or 533 National Flood Insurance policies in force in the city. We divide these changes into two parts.

The first covers the decrease in flood insurance rates or premiums that ranges from $0 to $50 per month (up to $600 per year). About 363 or 31.8% of the policies will be impacted by this change.

On the other hand, you have a better deal with the second part of this good change since it generally covers 170 or 14.9% of the national flood insurance policies in force. The immediate decrease ranges from $50 to more than $100 per month ($600 - >$1200 per year).

Considering that the national average when it comes to premiums is about $1000 across the United States, this can really help a lot of people get flood insurance through FEMA especially when we're talking about coastal zones where flood risks can be extremely high and get the bulk of the damages from natural disasters.

The Bad

If there are good changes, there are also bad ones. This change from the Risk Rating 2.0 will get increase your flood insurance costs when it comes to FEMA and the National Flood Insurance Program (NFIP).

The increase will range from $0 to $10 per month (up to $120 per year) and will impact about 481 or 42.2% of the policies in the city itself. Now, this increase may seem so small, but you have to consider that this takes the biggest percent out of the population in Denver.

Now that we're facing increased climate risks, it's hard to ignore that the risk of flooding in areas that sit near the coastline is safe from the damage from floods.

The Ugly

Now, let's move deeper and into the ugly changes. For this part, we want to emphasize that we divided this into three parts: the ugly, the uglier, and the ugliest change. Let's dive into specifics.

First, the ugly change will be covering about 36 or 3.2% of the policies. The reason why this falls under the ugly change is that the increase is now noticeable since it ranges from $10 to $20 per month ($120 to $240 per year). 

On the other hand, you have the uglier change which is something that about 69 or 6.1% will experience. This time around, the increase won't be bearable since it ranges from $20 to $50 per month ($240 to $600 per year).

Lastly, you can also see few Denver residents fall on the ugliest side. This mostly involves about 21 or 1.8% of properties in the city. Although it's a very small number of people, you have to realize that the increase ranges from $50 to more than $100 per month ($600 to >$1200 per year in annual premium).

This can really make it difficult to go into federal flood insurance and even a harder experience if the private flood insurance market is not available to protect you from floodwaters. Regardless of where you fall on these three, considering that the average premium across Colorado is about $930, this type of increase can really hurt your budget and we won't even blame you if you want to get private policies.

The National Flood Insurance Program

The National Flood Insurance Program (NFIP) is the answer of the federal government when it comes to flood concerns. This program was established ever since 1968 through the National Flood Insurance Act of 1968. The NFIP is currently working as the federal or government agencies' flood insurance for the United States and its residents. FEMA and NFIP always look into analyzing and studying floodplain devolvement, flood model management, flood insurance, and disaster assistance. So, what does the NFIP cover?

Colorado Flood Insurance: Denver Risk Rating 2.0 Update

First, it's important to keep in mind that flood insurance is a separate policy from your usual homeowner's insurance and auto insurance policies. This means that if your house gets inundated during a flood event, it won't be the homeowner's policy that will give you flood coverage.

Now that we got that out of the way, the National Flood Insurance Program (NFIP) provides coverages for the flood damage that your property will sustain. The property will involve both the dwelling or the building itself — either residential property or commercial — as well as the contents or the personal property that's inside the insured home. NFIP flood insurance will provide coverage for the dwelling that maxes to $250,000 and contents that maxes to $100,000. There's also additional coverage that comes in when you're a participating community in the National Flood Insurance Program (NFIP) which can be enjoyed through the Community Rating System (CRS) and the Increased Cost of Compliance (ICC).

When Will It Happen?

The Risk Rating 2.0 from the National Flood Insurance Program (NFIP) will take effect starting this October 1st, 2021. It's important to note however that you really don't need to immediately adopt these new rates once Fall comes. The NFIP will allow you to adopt these new rates on your renewal, so if you just renewed your policy with FEMA last April then you can move into the new rates in April 2022.

At the end of the day, we're still subject to extreme weather events, and our friends in coastal areas are more prone to the dangers of these disasters. It's best to know where to get a policy best because we've seen that even without floods, a lot of people still drown due to these expensive insurance premiums.

Get a quote from the Flood Insurance Guru!

If you have questions on your flood insurance options in Los Angeles, your flood risk score, or anything about flood, reach out to us by clicking below. Remember, we have an educational background in flood mitigation which lets us help you understand flood risks, your flood insurance, and mitigating your property long-term.

Get Your Flood Risk Score Here!

Colorado is a state known for its diverse landscapes ranging from deserts to rivers and each presents flood risks to properties across the state. We've already covered the statewide increases and decreases in flood insurance premiums with the Risk Rating 2.0.

Today, we dive deeper into more specific territories and discuss the changes coming with the National Flood Insurance Program (NFIP) Risk Rating 2.0 to Boulder, Colorado.

Colorado Flood Insurance: Boulder Risk Rating 2.0 Update

Risk Rating 2.0: What Changes?

This is what FEMA calls equity in action when it comes to making the cost of flood insurance policies fairer per policyholder. This simply means that when it comes to flood insurance rates, a lot of things will start to change with the NFIP and FEMA. Generally, this is because property values for each individual property will be accounted for when finalizing your quote and flood insurance premiums with the National Flood Insurance Program (NFIP).

It's important to note, however, that this won't mean that the cheapest flood insurance will go automatically to lower-valued homes. It's equally important that we take into account, just like FEMA does and the private flood insurance industry, what's called flood risk variables which includes, but is not limited to the following:

  • Designation in the flood zone maps.
  • History of flood incidents, flood damage, and flood loss
  • Flood claims made with the property
  • Flood hazard, flood plain devolvement, and impact of flooding
  • Risk of flood in the area, the chance of flooding, and flood frequency
  • Mitigation efforts made on the property. Is the lowest floor above the base flood elevation? Are there enough flood openings to let floodwaters through?

Now that we've covered the NFIP and the Risk Rating 2.0, let's talk about its impact on Boulder, Colorado. We'll cover the good, the bad, and the ugly changes coming to the residents of the city.

Colorado Flood Insurance: Boulder Risk Rating 2.0 Update

The Good

When we're talking about these changes, we want to emphasize that this will solely involve flood premiums changes or updates from FEMA and the NFIP. Let's kick this off with the good changes coming to residents of Boulder.

The good changes will involve an immediate decrease in flood premiums with FEMA. This decrease can go up to more than $100 (>$1200 per year) and will impact 46.8% or 533 National Flood Insurance policies in force in the city. We divide these changes into two parts.

The first covers the decrease in flood insurance rates or premiums that ranges from $0 to $50 per month (up to $600 per year). About 363 or 31.8% of the policies will be impacted by this change.

On the other hand, you have a better deal with the second part of this good change since it generally covers 170 or 14.9% of the national flood insurance policies in force. The immediate decrease ranges from $50 to more than $100 per month ($600 - >$1200 per year).

Considering that the national average when it comes to premiums is about $1000 across the United States, this can really help a lot of people get flood insurance through FEMA especially when we're talking about coastal zones where flood risks can be extremely high and get the bulk of the damages from natural disasters.

The Bad

If there are good changes, there are also bad ones. This change from the Risk Rating 2.0 will get increase your flood insurance costs when it comes to FEMA and the National Flood Insurance Program (NFIP).

The increase will range from $0 to $10 per month (up to $120 per year) and will impact about 481 or 42.2% of the policies in the city itself. Now, this increase may seem so small, but you have to consider that this takes the biggest percent out of the population in Boulder.

Now that we're facing increased climate risks, it's hard to ignore that the risk of flooding in areas that sit near the coastline is safe from the damage from floods.

The Ugly

Now, let's move deeper and into the ugly changes. For this part, we want to emphasize that we divided this into three parts: the ugly, the uglier, and the ugliest change. Let's dive into specifics.

First, the ugly change will be covering about 36 or 3.2% of the policies. The reason why this falls under the ugly change is that the increase is now noticeable since it ranges from $10 to $20 per month ($120 to $240 per year). 

On the other hand, you have the uglier change which is something that about 69 or 6.1% will experience. This time around, the increase won't be bearable since it ranges from $20 to $50 per month ($240 to $600 per year).

Lastly, you can also see few Boulder residents fall on the ugliest side. This mostly involves about 21 or 1.8% of properties in the city. Although it's a very small number of people, you have to realize that the increase ranges from $50 to more than $100 per month ($600 to >$1200 per year in annual premium).

This can really make it difficult to go into federal flood insurance and even a harder experience if the private flood insurance market is not available to protect you from floodwaters. Regardless of where you fall on these three, considering that the average premium across Colorado is about $930, this type of increase can really hurt your budget and we won't even blame you if you want to get private policies.

Colorado Flood Insurance: Boulder Risk Rating 2.0 Update

NFIP

The National Flood Insurance Program (NFIP) is the answer of the federal government when it comes to flood concerns. This program was established ever since 1968 through the National Flood Insurance Act of 1968. The NFIP is currently working as the federal or government agencies' flood insurance for the United States and its residents. FEMA and NFIP always look into analyzing and studying floodplain devolvement, flood model management, flood insurance, and disaster assistance. So, what does the NFIP cover?

First, it's important to keep in mind that flood insurance is a separate policy from your usual homeowner's insurance and auto insurance policies. This means that if your house gets inundated during a flood event, it won't be the homeowner's policy that will give you flood coverage.

Now that we got that out of the way, the National Flood Insurance Program (NFIP) provides coverages for the flood damage that your property will sustain. The property will involve both the dwelling or the building itself — either residential property or commercial — as well as the contents or the personal property that's inside the insured home. NFIP flood insurance will provide coverage for the dwelling that maxes to $250,000 and contents that maxes to $100,000. There's also additional coverage that comes in when you're a participating community in the National Flood Insurance Program (NFIP) which can be enjoyed through the Community Rating System (CRS) and the Increased Cost of Compliance (ICC).

When Will It Happen?

The Risk Rating 2.0 from the National Flood Insurance Program (NFIP) will take effect starting this October 1st, 2021. It's important to note however that you really don't need to immediately adopt these new rates once Fall comes. The NFIP will allow you to adopt these new rates on your renewal, so if you just renewed your policy with FEMA last April then you can move into the new rates in April 2022.

At the end of the day, we're still subject to extreme weather events, and our friends in coastal areas are more prone to the dangers of these disasters. It's best to know where to get a policy best because we've seen that even without floods, a lot of people still drown due to these expensive insurance premiums.

Get a quote from the Flood Insurance Guru!

If you have questions on your flood insurance options in Los Angeles, your flood risk score, or anything about flood, reach out to us by clicking below. Remember, we have an educational background in flood mitigation which lets us help you understand flood risks, your flood insurance, and mitigating your property long-term.

Get Your Flood Risk Score Here!

The Federal Emergency Management Agency (FEMA) is rolling out changes when it comes to flood insurance rates across all states in the country. Today, we will unpack these changes coming to Colorado and how they can impact your flood insurance in the future.

The Flood Insurance Guru | Colorado Flood Insurance: New Federal Flood Insurance Risk Rating 2.0

Colorado has been experiencing a lot of flooding in recent times. Even at the time of writing, 5 inches of rain has caused flash flooding that even closed parks due to the risks it's presenting. Although this might not affect the flood insurance options in the state, it's important to remember that being in constant threat of floods might cause the private market to pull away from these risks.

Today, we want to make sure that you know well your alternative when the private flood isn't available and how the Risk Rating 2.0 that's changing the National Flood Insurance Program (NFIP).

The NFIP 2.0

The Risk Rating 2.0, or commonly known as NFIP 2.0 as well, is more of a move of equity. This update on the federal flood insurance program itself will allow you to no longer pay more than your fair share when it comes to premiums as flood insurance premiums would now be based on the value of your property or home starting this October. 

It's important to note that the rates you'll be getting will be depending on the details FEMA has on your property, so you better watch out for those flood damage, the distance of your lowest grade comparative to the base flood elevation in your community, flood damage and flood claims history, flood frequencies in your area especially in more recent time, and where the flood zone maps you.

 

The Flood Insurance Guru | Colorado Flood Insurance: New Federal Flood Insurance Risk Rating 2.0

When it comes to the rate changes happening across the country, you're going to see these colors in ranges which are the green, blue, pink, and grey range bars. Now, each of these colors represents the good, the bad, and the ugly changes coming to each state.

For this one, we want to focus on the Centennial State of Colorado. Let's unpack these and see what they can mean for flood insurance in the federal government in the near future.

The Flood Insurance Guru | Colorado Flood Insurance: New Federal Flood Insurance Risk Rating 2.0

The Good

First, we want to focus on the extreme ranges that you're going to see in this report which is the green range. Now, this range is a "good change" for FEMA and NFIP flood insurance policyholders.

About 43% or 8,677 policies will experience this good change. The green range represents policies that will start to receive a decrease in flood insurance rates once the NFIP 2.0 kicks in. This decrease will go up to more than $100 per month ($1200 per year) and, in some cases, it can be an immediate decrease for the policyholders.

This can be very helpful for those mapped in the high-risk flood areas or the special flood hazard area (SFHA). Considering that FEMA is gearing towards updating each flood map of the states across the country, this decrease can really give you peace of mind when it comes to paying your flood insurance.

The Bad

Now, let's move into that blue range which we call a "bad change". This will impact about 48% or 9,545 policies that FEMA has in force in Colorado. We call this a bad change because this means that there's going to be an increase in your rates with FEMA once NFIP 2.0 kicks in.

The increase ranges from $0 to $10 per month ($0 - $120 per year). Considering that the average premium in Colorado sits around $850, you're going to expect that your rates to go up to about $920 on average. Since the exact amount of your premium depends on the value of your property, so this amount can blow up to more than $1000.

The Ugly

Lastly, when we're talking about the ugly change we'll be focusing on the pink and grey ranges. Although this generally covers the smallest percentage of these changes, it's the biggest impact especially when it comes to rate changes.

Starting with that pink range, which is about 5% or 945 FEMA policies in Colorado, there's going to be an increase in flood insurance rates of around $10 to $20 per month ($120 to $240 per year). This means that if you're paying about $1000 for your flood policy from FEMA right now, you're going to start paying for up to $1240 starting this October.

On the other hand, when talking about the grey range it's uglier than the one before since this will cause an increase to flood insurance rates of more than $20 per month ($240 per year). This can really skyrocket your premiums with FEMA to more than $1500, even $2000. This is something that 819 policyholders (4% of the total policies in Colorado) to deal with once the Risk Rating 2.0 starts this October.

You can see a full graph for this NFIP 2.0 changes right here:

The Flood Insurance Guru | Colorado Flood Insurance: New Federal Flood Insurance Risk Rating 2.0

When Will It Happen?

Now, the date when you can adopt this program really depends if you're doing a renewal or if it's a new business policy. You see, you can expect these changes to start on October 1st and you're going to adapt to these rate changes if you're buying flood insurance from FEMA on or after that date. 

On the other hand, if you're doing a renewal with FEMA after that date then you don't have to take in these new rate changes until April 1st, 2022.

We've been talking about this since last year since basically the NFIP is already 30 years old already and is in need of this change. It's important to start preparing for this especially since there's this possibility that private flood insurance carriers will pull away from providing policies in Colorado. We've seen this happen before and even in other states like Texas, so it's best to be prepared when you're left to go with federal flood insurance.

If you have questions on these upcoming changes, what are your flood insurance options in Colorado, or anything about flood, reach out to us through the links below. You can also watch this on our YouTube channel.

Remember, we have an educational background in flood mitigation and we want to help you understand flood risks through education and awareness in flood insurance and preparedness.

The Flood Insurance Guru | 2054514294   Get Your Quote from Flood Insurance Guru      The Flood Insurance Guru | Chris Greene | YouTube

As we fast approach the hurricane season and go through the middle of Spring, we want to understand how this current weather can affect the risk of flooding throughout Colorado. We'll unpack the impacts of the recent snowstorms on flood insurance, flooding in general, and how the Spring runoff can impact these disasters.

The Flood Insurance Guru | Blog | Colorado Snowstorms: Impacts of the May Spring Runoff

As we end the month of April, Colorado has been facing a storm system that brings both rainfall and snowstorms across the state. The heavy precipitation brought about 1 inch up to 4 inches of rain in some areas and this is expected to go on as we move further into hurricane season. Since we're going into a warmer climate in the Spring season, this type of weather can really be very dangerous to residents of the state.

Spring Runoff and Spring Thaw

It's a common occurrence when it comes to the transition of seasons from winter to spring that the snow collected over the former season will start to melt and seep into the soil. This event is called a spring thaw. In turn, it saturates the ground make it less capable of draining water naturally. Considering how much snow is coming in Colorado, this definitely presents a more prominent spring thaw which will cause more flooding in the state if this weather keeps its pace.

The Flood Insurance Guru | Blog | Colorado Snowstorms: Impacts of the May Spring Runoff

As the melting snow seeps into the ground this also causes streams and river levels to rise. This event is called a spring runoff and if we look at the 30 inches of snow covering major parts of the state, this can mean that flooding can be more frequent even with a small amount of rain. When it comes to flood threats, a rising level of any body of water plus the less capable draining of the soil due to spring thaw is sure to bring flooding even in high-lying areas. 

Flood Insurance

It's important to note that this type of event can cause flood maps to be affected wherein properties might be moved into a high-risk flood zone. This is why despite being in a low-risk flood zone, we recommend property owners buy flood insurance to protect their property.

The Flood Insurance Guru | Blog | Colorado Snowstorms: Impacts of the May Spring Runoff

As flood is expected to be more frequent in the coming weeks, it's best to make sure that you're well protected with flood insurance.  Now, it's important to note that the Federal Emergency Management Agency (FEMA) will be able to provide you a flood policy through the National Flood Insurance Program (NFIP) as long as you're in a participating community. So this may be a go-to solution when it comes to flood insurance.

FloodSmart | The National Flood Insurance Program

The NFIP provides coverage for property damage that maxes up to $250,000 for residential policies and $500,000 max for commercial policies. There's also a max of $100,000 when it comes to contents or personal property coverage. However, it should be mentioned that federal flood insurance generally has a 30-day waiting period before your policy takes effect on the property. So, if you're going with federal flood insurance, you should expect this waiting period and offset your plans on flood policies.

The Flood Insurance Guru | Blog | Colorado Snowstorms: Impacts of the May Spring Runoff

On the other hand, there's also private flood insurance. First, it's important to note that there may some private insurers who are going to pull away from these high-risk areas. Private flood generally offers more coverage compared to the NFIP and needs less time when it comes to the waiting period for the policy to take effect. It's important to note that the NFIP maxes out at the amount we mentioned previously.

This is different from private flood since they really don't have coverage limits which means you can get more than $250,000 in property coverage, more than $100,000 in contents coverage, and extra coverage such as additional living expenses, loss of use, and replacement costs.

The Flood Insurance Guru | Blog | Colorado Snowstorms: Impacts of the May Spring Runoff

So, if you have any questions on preparing for flood, flood insurance options, flood zones, or anything about flood reach out to us. Remember, we have an educational background in flood mitigation and we want to share this knowledge with you, so you too can be prepared when crap happens. Click the links below to call us, watch our daily flood education videos on YouTube, or get a quote for your flood policy to get started protecting your property from floods.

The Flood Insurance Guru | 2054514294    Get Your Quote from Flood Insurance Guru     The Flood Insurance Guru | Chris Greene | YouTube