For the past couple of months, we've been covering a lot about the changes coming to federal flood insurance under the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP). This new Risk Rating 2.0 program might be sounding more familiar as we get closer to phase one of its releases.

Iowa Flood Insurance Updates: Des Moines Risk Rating 2.0 Changes

Today, we want to cover these flood insurance changes to the city of Des Moines. Before that, we want everyone in the city and the state of Iowa to prepare themselves for any possible flooding that may happen due to Hurricane Ida.

Make sure to reach out to your community officials to ensure your property or reach out to us so we can help you protect your property. We've seen how this type of situation can create when it comes to flooding. Just this year's Spring season, Iowa faced a lot of flooding.

Contact Us

Iowa is sitting directly between both the Mississippi River and the Missouri River which immediately entails a problem when it comes to flooding and how easily flood levels can rise. I've been in this insurance industry for many years now and I have an educational background to make sure that I can help everyone understand how these flood threats can impact your buildings, your homes, and other personal property, and how flood water can move especially when it's caused by heavy rain.

So what's changing in De Moines, Iowa when it comes to the federal flood insurance with FEMA and the NFIP? What does this mean to your respective community when you're impacted? Let's talk about that, but first, let's do a brief review of the Risk Rating 2.0 program.

If you want to read more on FEMA and NFIP changes to Iowa in general, CLICK HERE to read our blog on Update for Iowa with Risk Rating 2.0.

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). In turn, the NFIP and FEMA make sure that you will get accurate flood insurance rates for your policy.

It's important to note, however, that this won't mean that the cheapest flood insurance will go automatically to lower-valued homes, and higher-valued homes or expensive properties will cause a big headache for the property owner.

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 from expansive flood studies. There are things that are staying and changing when it comes to calculating your flood risk score.

The remaining features are as follows:

  • Zone designation in the flood insurance rate map (e.g. special flood hazard areas (SFHA) or preferred flood zones) however flood insurance rate maps will only be used from a regulatory standpoint, not rating.
  • Distance to a body of water such as a river, lake, or even the coastline
  • Prior flood insurance claims or flood claims made with the property
  • Policy assumption and grandfather rule

The new things that will come with the Risk Rating 2.0 are as follows:

  • Types of floods that your property experience. This can be either pluvial or the accumulated water due to rain, runoff of collected water that flows from higher areas, storm surge and coastal erosion, dam/levee damage or overflow, and even a combination of these things.
  • First-floor height and elevation of the structure. A new feature that determines your flood risk score is the distance between the ground (grade) from your first floor or the first habitable floor of your property.
  • Flood Risk Mitigation Measures made on the property. Is the lowest floor above the base flood elevation? Are there enough flood openings to let floodwaters through?

Get Your Flood Risk Score Here!

Now, let's talk about specifics and tackle the flood insurance rate changes coming to homes in Polk County and Des Moines.

Iowa Flood Insurance Updates: Des Moines Risk Rating 2.0 Changes

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 Des Moines City and Polk County.

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 42% or 638 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 428 or 28.2% 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 210 or 13.8% 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 725 or 47.8% 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 DuPage.

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 49 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 100 or 7.9% 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 Polk county residents fall on the ugliest side. This mostly involves about 8 or 0.5% of properties in the city. Although it's a very small number of people, you have to realize that the increase ranges from $70 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 Iowa is about $1,115, 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?

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.

Iowa Flood Insurance Updates: Des Moines Risk Rating 2.0 Changes

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 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.

If you have questions on your flood insurance options in Iowa, your flood risk score, or anything about flood, reach out to us by clicking below.

Buy Flood Insurance Now!

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.

For the past couple of months, we've been covering a lot about the changes coming to federal flood insurance under the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP). This new Risk Rating 2.0 program might be sounding more familiar as we get closer to phase one of its releases.

Iowa Flood Insurance Updates: Cedar Rapids Risk Rating 2.0 Changes

Today, we want to cover these flood insurance changes to the city of Cedar Rapids. Before that, we want everyone in the city and the state of Iowa to prepare themselves for any possible flooding that may happen due to Hurricane Ida.

Make sure to reach out to your community officials to ensure your property or reach out to us so we can help you protect your property. We've seen how this type of situation can create when it comes to flooding. Just this year's Spring season, Iowa faced a lot of flooding.

Contact Us

Iowa is sitting directly between both the Mississippi River and the Missouri River which immediately entails a problem when it comes to flooding and how easily flood levels can rise. I've been in this insurance industry for many years now and I have an educational background to make sure that I can help everyone understand how these flood threats can impact your buildings, your homes, and other personal property, and how flood water can move especially when it's caused by heavy rain.

So what's changing in De Moines, Iowa when it comes to the federal flood insurance with FEMA and the NFIP? What does this mean to your respective community when you're impacted? Let's talk about that, but first, let's do a brief review of the Risk Rating 2.0 program.

If you want to read more on FEMA and NFIP changes to Iowa in general, CLICK HERE to read our blog on Update for Iowa with Risk Rating 2.0.

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). In turn, the NFIP and FEMA make sure that you will get accurate flood insurance rates for your policy.

It's important to note, however, that this won't mean that the cheapest flood insurance will go automatically to lower-valued homes, and higher-valued homes or expensive properties will cause a big headache for the property owner.

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 from expansive flood studies. There are things that are staying and changing when it comes to calculating your flood risk score.

The remaining features are as follows:

  • Zone designation in the flood insurance rate map (e.g. special flood hazard areas (SFHA) or preferred flood zones) however flood insurance rate maps will only be used from a regulatory standpoint, not rating.
  • Distance to a body of water such as a river, lake, or even the coastline
  • Prior flood insurance claims or flood claims made with the property
  • Policy assumption and grandfather rule

The new things that will come with the Risk Rating 2.0 are as follows:

  • Types of floods that your property experience. This can be either pluvial or the accumulated water due to rain, runoff of collected water that flows from higher areas, storm surge and coastal erosion, dam/levee damage or overflow, and even a combination of these things.
  • First-floor height and elevation of the structure. A new feature that determines your flood risk score is the distance between the ground (grade) from your first floor or the first habitable floor of your property.
  • Flood Risk Mitigation Measures made on the property. Is the lowest floor above the base flood elevation? Are there enough flood openings to let floodwaters through?

Get Your Flood Risk Score Here!

Now, let's talk about specifics and tackle the flood insurance rate changes coming to homes in Linn County and Cedar Rapids.

Iowa Flood Insurance Updates: Cedar Rapids Risk Rating 2.0 Changes

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 Cedar Rapids City and Linn County.

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 42% or 638 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 428 or 28.2% 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 210 or 13.8% 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 725 or 47.8% 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 Linn.

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 49 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 100 or 7.9% 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 Linn county residents fall on the ugliest side. This mostly involves about 8 or 0.5% of properties in the city. Although it's a very small number of people, you have to realize that the increase ranges from $70 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 Iowa is about $1,115, 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?

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.

Iowa Flood Insurance Updates: Cedar Rapids Risk Rating 2.0 Changes

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 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.

If you have questions on your flood insurance options in Iowa, your flood risk score, or anything about flood, reach out to us by clicking below.

Buy Flood Insurance Now!

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.

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 Iowa and how they can impact your flood insurance in the future.

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

The Hawkeye state has been subject to flash floods and spring runoff due to its proximity to bodies of water like the Mississippi River and Lake Michigan. It's always important to remember that these nearby waters can bring flooding to an area given the right conditions. In turn, the state has seen its fair share of the flood, and even just early this year, they went through a spring flood.

Today, as we go deeper into the hurricane season, we want to talk about the upcoming changes when it comes to federal flood insurance. We'll unpack the good, the bad, and the ugly changes with the upcoming National Flood Insurance Program (NFIP) Risk Rating 2.0.

It's important to keep in mind that these changes on flood insurance premiums with FEMA may not affect you since you might be doing a policy with private flood insurance and private insurance companies. However, there's always that chance that the insurer will pull away from your community or decide to non-renew once they deem that the risk of flooding for your property is a bit too high for them. This generally leaves people to go back to the National Flood Insurance Program (NFIP) since there are fewer risks of having that kind of experience with the federal government.

At the end of the day, the biggest flood risk we face is not having enough protection from natural disasters like floods, earthquakes, and things like that. It's always better to be safe than sorry.

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 this would now be based on the value of your property or home starting this October. 

The Flood Insurance Guru | Iowa 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 represent these changes with flood insurance rates from FEMA. Now, each of these colors represents the good, the bad, and the ugly changes coming to each state.

The National Flood Insurance Program (NFIP) continues to provide flood coverage for flood damage to buildings and contents (personal property) of $250,000 and $100,000 maximum respectively.

Let's unpack these and see what they mean for flood insurance.

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

The Good

First, let's go over the good things coming with the NFIP 2.0 which is going to be that green slice. This slice is composed of 37% or 4,670 policies in Iowa and will experience a decrease in flood insurance rates.

The decrease can be more than $100 ($1200 per year) and will immediately take effect on policyholders under this range. Since the average premium when it comes to flood insurance from FEMA stands at $1,115 in Iowa, this decrease can really help you save up on those flood premiums. This is significantly better for those who have to pay premiums that range from $2000 to $3000 with FEMA.

A lot of people face a dilemma of buying policies from FEMA since the cost of flood insurance with them is generally higher than the competition. However, with this new rating structure, we encourage people to get flood insurance especially if they have a lower-valued home. This ensures that there's protection for residential properties and commercial ones alike.

The Bad

Moving forward, let's talk about the blue slice which is another extreme range since it's going to impact 52% or 6,529 policies in Iowa.

This is what we call the bad change due to its impact on flood insurance rates to those policyholders. The increase ranges from $0 to $10 per month ($0 - $120 per year). This means that you're going to start paying for your premiums with FEMA at an average of $1,235.

The Ugly

Lastly, we want to move into the last two slices which are the smallest, but has the most drastic change on flood insurance rates. The pink and grey slices fall under the same ugly change because it's going to bring more increase in rates compared to the blue slice. Let's do a breakdown of these two.

Starting with the pink slice which covers 5% or 624 policies in Iowa, there will be an increase that ranges from $10 to $20 per month ($120 - $240 per year). This means that you'll start paying up to $1400 average for that federal flood insurance.

On the grey slice, we're talking about an increase coming to 6% or 815 policies in Iowa. The increase will be more than $20 per month (>$240 per year). This means that you may get an increase of up to $100 or more depending on the value of your property. This can easily bring your premium to that $1500 base price and it may be higher than that.

This can be very difficult to adapt especially for those with higher-valued homes since you might pay for something like a $2,000 flood insurance premium, but you will only be covered to $250,000 on a $1,000,000 property. 

You can see a full graph of these changes below:

The Flood Insurance Guru | Iowa 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.

So, you want to be very ready for this. 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. 

If you have questions on these upcoming changes, what are your flood insurance options in Iowa, 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.

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