Today, we want to answer one of the most asked questions ever since this new Risk Rating 2.0 program came into the picture when it comes to the National Flood Insurance Program (NFIP) and the Federal Emergency Management Agency (FEMA).

Will my rates double with the Risk Rating 2.0 update?

Will My Flood Insurance Rates Double in Risk Rating 2.0?

Risk Rating 2.0

When it comes to this new update, one of the things that people may think about and be haunted by asking if this new Risk Rating 2.0 program means that flood insurance rates across the board will double.

Before we dwell too much on that question, we want to address first what is going to happen with the Risk Rating 2.0.

Just because it says "2.0" doesn't mean that your rates will double. 2.0 simply pertains to the fact that this is a newer version of federal flood insurance. Think of it as an app in your phone updating from an old version to a new one; sometimes it even goes up to 7.0, but it doesn't really mean that the app will be seven times bigger.

Will My Flood Insurance Rates Double in Risk Rating 2.0?

This new program is deemed equity in action as it aims to provide the most accurate flood insurance rates by using each property's unique flood risks. The new Risk Rating 2.0 program will start to look at multiple flood risk variables or factors in order to finalize your rates and this way it hopes to make give everyone a transparent flood insurance pricing for each property owner when they pay.

With the flood risk variables kicking in, your property's going to get a final flood risk score that covers addresses your risks and how they contributed to calculating your rate. We'd like to put it simply as "the fingerprint of your flood risks".

These flood risk variables will cover multiple areas concerning your property and the nature of floods. One of the biggest changes is that this new program will only look at flood zones as a regulatory reference. This means that flood zones will no longer impact rates, but can still demand you to get flood insurance if you're in the special flood hazard area (SFHA).

Rate Changes with Risk Rating 2.0

The truth is when it comes to flood insurance policies and their respective flood insurance premium, Risk Rating 2.0 will can either cut your premium rates in half or create a rate increase that will double the price of flood insurance. All of this is dependent on your flood risk score.

Get Your Flood Risk Score Here!

The things that will determine your flood risk and flood insurance rates will cover both things from the legacy program and new things with the Risk Rating 2.0. We've put down a list of the things that are staying and the new kids in the block when in the federal flood insurance scene.

The remaining features are as follows:

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

  • Types of floods. 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.
  • Flood frequency. How often do these floods happen on your property or in your area?
  • 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?
  • Replacement Cost. How much will it cost insurance companies to rebuild or repair your home when damaged?

Will My Flood Insurance Rates Double in Risk Rating 2.0?

Does this mean that higher-value homes will be the ones to double the cost of flood insurance since they will get annual premium increases and flood insurance policyholders with lower-value homes will be the only ones to pay half of their flood insurance?

If we really look at Risk Rating 2.0 closely, this will address each and every individual property's flood risk score. So the higher the risk of flooding within your property, the higher the increase you'll expect. Right now, we're currently seeing an estimate of 70% of the registered properties (both residential properties and commercial ones) will get an increase in flood insurance rates with the Risk Rating 2.0.

This 70% doesn't really contain solely higher-valued homes and the other 30% who might not see a price increase are lower-valued homes. This is a complete mix of the overall population across the country. It can really be hard to tell whether or not you're going to be one of the homeowners who will get their flood premiums cost cut in half since we're yet to see any impact of implementation from FEMA and the NFIP.

Will My Flood Insurance Rates Double in Risk Rating 2.0?

What is important to note here is that there will be places and properties that might even see a double-digit rate increase with their flood policies from FEMA and the NFIP.

That said, I think the best thing to really ask is how well you're protected because we're already seeing that floods can happen anywhere at any given time. Even low-risk flood areas like New York City, Atlanta, and Waverly saw huge flood damage even though they're well outside the flood-prone areas.

Make sure that you are protected at all times and that you also get to protect your property from floodwaters. If you have any questions on Risk Rating 2.0, how to determine your flood risk score or anything about floods and flood insurance, reach out to us by clicking below.

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We also encourage that you visit our Flood Learning Center where we try to answer your questions on flood insurance.

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Remember, we have an educational background in flood mitigation which lets up help you understand the level of risk that you have when it comes to flooding, your flood insurance, and protecting your property long-term.

The federal flood insurance industry has changed a lot since the Risk Rating 2.0. One of the biggest changes is how the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP) will look at flood zones. FEMA, NFIP, and mortgage lenders would have to only follow the new rating system and regulatory standards of the Risk Rating 2.0.

Are Preferred Flood Zones Gone?

As natural disasters are becoming progressively more destructive and unpredictable, we want to discuss how changes on looking at flood maps would change.

Risk Rating 2.0

The implementation of the Risk Rating 2.0 or simply NFIP 2.0 significantly impacts the rates going around with federal flood insurance. For the most part, this means that there will be an increase in rates as the new program gears towards a more accurate flood risk per property. We'd like to call this the fingerprint of your flood risk due to the nature of having an individual property getting a unique risk rating score.

This program basically says that each property will get a unique flood risk score per variable with the rating engine system in from both the legacy program from Federal Emergency Management Agency (FEMA) and new things coming into consideration.

The things that will carry over from the legacy program which will still have a bearing on your flood insurance rates are as follows:

  • Flood zone designation based on community flood maps. Flood zones also have the bearing to require flood insurance if you're in the Special Flood Hazard Area (SFHA) or High-Risk Zones
  • Flood Insurance Claims. Despite changing to a claims variable system, flood claims with FEMA may still impact your overall rates.
  • Policy assumption and policy transfer.
  • The Grandfather Rule.
  • Pre-FIRM and Newly Mapped discounts.

Are Preferred Flood Zones Gone?

The new things that will impact your rates will be from:

  • Types of flooding that your property experience.
  • Flood frequency.
  • Distance to any water source.
  • First-floor height or distance of the first livable area to grade (ground).
  • Elevation of the structure or the property itself. How high is the first floor of the property compared to the ground hence properties that are elevated are most likely to get a decrease due to this.
  • Replacement costs. This means that higher-valued homes will get an increase and lower-valued homes will get a decrease due to the overall expenses to rebuild the property due to flood damage.
  • Flood Risk Mitigation Measures made on the property.

Despite these changes to the overall rating engine systems in the Federal Emergency Management Agency (FEMA), your flood insurance policy will still follow the same amount of $250,000 for building and $100,000 in contents max for flood coverage.

The Increased Cost of Compliance (ICC) is also one of the things that will carry over from the legacy National Flood Insurance Program to this new program as well as the Community Rating System (CRS) discounts.

 

Are Preferred Flood Zones Gone?

Traditionally with the National Flood Insurance Program (NFIP) and even in private flood insurance companies, you'll see low-risk flood zones and special flood hazard areas (SFHA) or high-risk flood zones. I can even remember the time where I can tell your flood insurance premiums in these low-risk flood zones like Flood Zone X depending on the coverage amount. So you'd see immediately how these low-risk zones or preferred zones immediately impact your rates and these rates are about $400 to $600 per year.

On the other hand and you would notice with the new program through Risk Rating 2.0, flood zones no longer impact your flood insurance rates with FEMA and the NFIP. So the perks of being in a preferred zone and that preferred rate will no longer be in the picture. This means that federal flood insurance will no longer rely on a Flood Insurance Rate Map (FIRM) to say that you will get a preferred rate since flood zones don't impact rates anymore.

Are Preferred Flood Zones Gone?

On the other hand, it's a different story when it comes to the private flood insurance industry. We're still noticing a lot of private flood carriers who look into these low-risk zones and provide that same preferred rating on premiums of about $400 to $600. It's important to note also that since these insurers are managed by private companies, they don't necessarily need to follow the changes coming to federal flood insurance.

Despite these changes and flood zones only becoming more of a factor that determines whether or not you're not required to buy flood insurance for your property, it's still important to get a form of security for a property. If you want us to help you get a desirable quote from both federal and private flood insurance, click the link below to reach us.

Buy Flood Insurance Now!

We also have a flood learning center where we try to answer your frequently asked questions about flood and flood insurance.

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Remember, we have an educational background in flood mitigation which lets us help you understand your flood risk, flood zone, flood insurance, and mitigating your property long-term.

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As we move into the biggest changes coming to the National Flood Insurance Program (NFIP) with the upcoming Risk Rating 2.0 Program, Tulsa City in Oklahoma clutched the game with a buzzer-beater of achievement when it comes to federal flood insurance.

Tulsa Flood Protection Above and Beyond

Today, we want to talk about what the recent Community Rating System (CRS) score change in Tulsa impacts flood insurance premiums for its locals.

Flooding and Oklahoma

At the time of writing, the South Central parts of the country including Oklahoma are facing a lot of rain as storm fronts stalled in the area. This weather condition adding up to the drought that Oklahoma is experiencing is one messy cocktail when it comes to flood.

When there's a drought, you can think of rain as water hitting hard cement. The soil won't be able to suck all this water in thus causing it to redirect to low-lying areas. In turn, this means that no one is safe when it comes to flooding.

However, this might not be a big of a concern when it comes to Tulsa since the local government and the community itself did a power move when it comes to flood mitigation by raising the city's community rating system.

But first, what is the Community Rating System (CRS)?

CRS Saves Lives Like CPR

The Community Rating System (CRS) is what we'd like to call the double-edged sword to flood insurance with the Federal Emergency Management Agency (FEMA). This is generally due to the fact this system created by the federal government encourages people to buy flood insurance and lowers the overall risk of flooding of property by rewarding a participating community with discounts to flood insurance rates.

Basically, this means that the more flood mitigation is done by a community, the higher the discount is for their policyholders. This is why both the federal government, private flood, and even our team encourages actions or measures for flood damage reduction. You get to save your property and avoid substantial damage to your safety and property while lowering your rates with your flood policy.

Tulsa Flood Protection Above and Beyond

Activities in the Community Rating System are organized in four main categories: public information, mapping and regulations, flood damage reduction, and warning and response. Stormwater management, drainage system maintenance, and floodplain development regulations

This discount can really save policyholders a lot of money since it goes up to a 45% discount if the community gets the highest class rating. Based on the flood mitigation measures made by the participating community or city, you will be categorized ranging from Class 10, being the lowest and having no discount, to Class 1, being the highest with a 45% discount on flood premiums. This type of discount is significantly better if we were to compare it to other insurance companies in the private market.

This program is significantly helpful since it allows more people to get into federal flood insurance and save themselves from empty wallets or debt especially in this COVID-19 pandemic scene.

What did Tulsa do and what reward did they achieve with this?

Tulsa Gets Rating Class 1 in CRS

Now, back on the topic of Tulsa City in Oklahoma where the local community was able to secure the Class 1 Rating with their CRS. This means that flood insurance with the National Flood Insurance Program (NFIP) and FEMA will have a 45% discount for both old and new policyholders. This is also inclusive of the standard flood insurance coverages for residential, commercial, and even rental properties. Tulsa is one of two cities in the whole country that achieve this rating score; the other being Roseville, California.

It's notable to mention that at the time of writing, Oklahoma averages about $950 when it comes to flood insurance premium rates. With this move up to a higher class rating with the CRS, flood insurance premium rates will get a discount of at least $430 based on the average.

Tulsa Flood Protection Above and Beyond

It's important to mention however that once we move into the new Risk Rating 2.0 program, we're going to see a slight increase with most areas in the state of Oklahoma. Regardless, this new CRS score will still be applicable to that. Considering that Tulsa is covered by multiple counties such as Osage County, Rogers County, Wagoner County, and Tulsa County, the 45% discount on flood premiums will impact a lot of people in a great way.

At the time of writing, about 70% of the city will be getting a slight increase of up to $10 per month (up to $120 per year) in premium rates and about 8.8% of policyholders will get more than $10 per month increase (more than $120 per year).

This type of effort of the people not only reduces the resident's overall flood damage and risk for flooding but also ensures that everyone will be able to get protection through flood insurance with FEMA and the NFIP.

What We Learned From This

Each year, flood insurance costs seem to only get higher and higher and in some areas, this can cause a lot of people to be discouraged in buying flood insurance at the expense of their safety and security against flood damage.

With programs like the Community Rating System lowering flood insurance when people take flood mitigation measures really help a lot of people and their local governments find encouragement in exerting effort into lessening the damages that flood brings to properties. Property owners don't just ensure their properties with flood insurance but start to mitigating their properties.

This type of reinforcement helps the case of all homeowners and business owners across the country especially when we're still living in a time where a lot of people underestimate how deadly floods can be.

It's safe to say that we should follow the steps done by Tulsa City in ensuring that they make the most out of flood insurance.

If you have any questions on flood insurance discounts, FEMA flood policies, flood insurance options in Oklahoma, or anything related to floods, click below to reach out to us or access our flood learning center.

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Remember, we have an educational background in flood mitigation which lets us help you understand your flood risks, flood insurance, and mitigating your property long-term.

NFIP Risk Rating 2.0 Equity in Action: The Common Sense Factor

The National Flood Insurance Program is releasing its new program Risk Rating 2.0 on October 1, 2021.

This is what the National Flood Insurance Program (NFIP) bringing flood insurance into the 21st century.

The National Flood Insurance Program is removing things like flood zones and base flood elevation to determine flood insurance premiums and helping people better understand flood risk.

NFIP Risk Rating 2.0 Equity in Action: The Common Sense Factor

They are using things like distance to water, type of flooding, replacement cots, and the difference between the ground and lowest habitational floor.

While these things are all great and will hopefully help insurance agents, property owners, and realtors better understand risk. There seems to be one factor missing and we call it the common sense factor.

NFIP Risk Rating 2.0 Equity in Action: The Common Sense Factor

The new Risk Rating 2.0 program seems to be so locked into these new factors that it is ignoring obvious important information for rating methodology. The pricing methodology also seems to be ignoring this one factor.

Let's give you a good example. Recently, we have been helping a builder who is completing a project in Louisiana. While building a new home, his rate while under construction is around $600 a year. That's really low for a building that has a lot of exposure while being built.

NFIP Risk Rating 2.0 Equity in Action: The Common Sense Factor

He is approaching completing the building, so he needed to see what the flood insurance is going to be. Once complete, the flood insurance is going to be over $3000 a year. That's crazy when you think this thing has walls and is roofed now. 

What's even crazier is through the build process this builder saw the exposure for flooding to occur. So not only did he meet the flood plain management guideline by building at a higher level. He raised the property by more than 9 feet.

Yet this is not being used as a lead rating factor. We understand that water source is going to be playing a big role on flood insurance premiums as well as flood frequency. However, property characteristics like raising a property should play a larger role in rating methodology and pricing methodology.

NFIP Risk Rating 2.0 Equity in Action: The Common Sense Factor

We have discussed in the past how some of these rating disparities could have a big impact on the individual property value and real estate market value in an area.

In the past, we expected to see this in coastal areas that are impacted by storm surges but this new program is taking into consideration how heavy rainfall will impact an area. 

In parts of Florida, we have seen premiums go from $700 a year to $6400 a year in the new Risk Rating 2.0 program.

NFIP Risk Rating 2.0 Equity in Action: The Common Sense Factor

In Birmingham Alabama, we have seen properties go from $3500 a year in the legacy program to $1200 in Risk Rating 2.0.

Starting October 1, 2021, flood insurance policies with the National Flood Insurance Program will use these new rating factors. So if you are an insurance agent, you want to make sure your customers are aware of these changes.

FEMA is still stating they can not have premium increases of more than 18% in a given year.

However, it's important to remember the rating methodology is different from Risk Rating 2.0.

NFIP Risk Rating 2.0 Equity in Action: The Common Sense Factor

So if you are struggling to understand how your new flood insurance rates will be determined then make sure to visit our flood learning center by clicking here.

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If you want to look at the different flood insurance coverage options available then click here.

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Remember we have an educational background in flood mitigation which means we are here to help you understand flood risks, flood insurance, and how to mitigate your property when it comes to flooding.

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 Milford City in Sussex County, Delaware.

Flood Insurance Guru | Delaware Flood Insurance: Milford NFIP Risk Rating 2.0 Update

Risk Rating 2.0: What Changes?

This is what the Federal Emergency Management Agency (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. 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:

  • Zone Designation in the flood insurance rate maps
  • Type of floods in the area. Is it from the coast? Is it pluvial or collected water from a storm?
  • Flood claims made with the property
  • Flood hazard determination, floodplain devolvement, and impact of flooding
  • First-floor height and elevation of the structure.
  • Flood mitigation measures 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 Milford, Sussex County. We'll cover the good, the bad, and the ugly changes coming to the residents of the city.

Flood Insurance Guru | Delaware Flood Insurance: Milford NFIP 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 the residents of Milford.

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 39.4% or 8,728 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 7,056 or 31.9% 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 1,672 or 1.3% 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 11,084 or 50.1% 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 Milford.

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 1,906 or 8.6% 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 383 or 1.8% 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 Milford residents fall on the ugliest side. This mostly involves about 25 or 0.1% 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 flood insurance rate across Delaware is about $750 according to Value Penguin, this type of increase can really hurt your budget and we won't even blame you if you want to get private policies.

Flood Insurance Guru | Delaware Flood Insurance: Milford NFIP Risk Rating 2.0 Update

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.

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 Delaware, 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!

As we dive deeper into the hurricane season, we also have to prepare for the upcoming changes to flood insurance across the United States. The Federal Emergency Management Agency (FEMA) is rolling out changes when it comes to flood insurance rates across all states in the country.

Let's saddle up as we lasso the changes coming to federal flood insurance in the Cowboy State of Wyoming.

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

Wyoming has a colorful history of floods. Just like the other states, when we travel back to the 1900s, we're going to see a lot of flood events that impacted the state. For this one, we want to focus on the two more recent floodings which happened in Wyoming.

In June 2010, rain and rapid snowmelt caused massive summer flooding in Fremont County. This disastrous event alone caused about $7 million in damages. This is why we really highlight the threats of these spring runoff. In the same month five years after, the state also witnessed devastating flash floods due to torrential rain and thunderstorms in Niobrara County. 

This is why it's important to understand your flood insurance since this is the only protection you can get against such force of nature. Getting flood insurance policies for your properties both residential property, commercial property, and contents or personal property is one great start in making sure that you're prepared and protected from flood damage. However, this can only get you far especially if you're not up-to-date when it comes to the changes coming to flood insurance.

We've seen this happen in federal flood insurance where some policyholders would be caught off guard with the price hike on their rates since they didn't follow the latest flood map updates. There are also private companies suddenly doing moratoriums and nonrenewing leaving homeowners without flood insurance.

Today, we want to focus on the National Flood Insurance Program (NFIP) as the landscapes of federal flood insurance will change with the Risk Rating 2.0. We will understand what the Risk Rating 2.0 changes can mean to flood insurance and answer:

The Risk Rating 2.0 is expected to drop on October 1, 2021.

The NFIP 2.0

The Flood Insurance Guru | Wyoming Flood Insurance: New Federal Flood Insurance Risk Rating 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. 

It's important to note that the federal government, FEMA, and the National Flood Insurance Program won't solely rely on the property values when calculating the flood insurance premium they'll give for each homeowner or policyholder.

This doesn't mean that all expensive property or higher-valued homes will be the only ones to experience rate hikes and lower-valued homes up to middle-income policyholders will be the only ones to get a decrease in their flood insurance rates. The pricing methodology will also rely on the flood data such as:

  • Overall risk of flooding and flood frequency in your community
  • History of flood damage and flood loss on the property
  • History and number of legitimate claims for flood insurance made in the last ten years
  • Mitigation projects made on the property. Are there flood openings? Is the lowest floor above the base flood elevation?
  • Flood map data. Are you sitting in a designated high-risk flood zone?
  • Possible flood hazard and other flood risk variables. How far is the nearest water source or body of water? Is the area prone to coastal erosions?

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 Flood Insurance Guru | Wyoming Flood Insurance: New Federal Flood Insurance Risk Rating 2.0

The Good

Let's start this one with good news or what you'll see in our graph as a green portion. This will affect 33% or 561 policies in Wyoming and generally reflects the good change because there will be a decrease in flood insurance rates for those who are included in this portion.

The decrease in FEMA policy rates will be more than $100 ($1200 per year). This type of change can really help those who aren't getting in the private flood market or want to continue their policies with FEMA.

The Bad

If there's good news, there is also bad news. This is represented by that blue portion in the graph which is composed of 60% or 1,017 policies from FEMA in the state.

This is what we call a bad change for these policyholders since there will be a small increase in flood insurance rates starting this October. Once the Risk Rating 2.0 takes effect, there will be an increase ranging from $0 to $10 per month ($0 - $120 per year).

This means that you might not experience any change will flood insurance when you fall to that $0 or you can get up to a $10 increase.

The Ugly

Lastly, we want to talk about the ugly changes coming with the Risk Rating 2.0. This will be shown by the pink and grey portions respectively. Both of these will still deal with getting you an increase in the rates you have with FEMA.

Starting with the pink portion, 4% or 76 policies in Wisconsin will get an increase ranging from $10 to $20 per month ($120 - $240 per year).

Whereas the grey portion will cover only 3% or 51 policies in the state. Despite having a small percentage, it's important to note that this will have the most drastic increase of more than $20 per month (>$240 per year). 

You can see the full pie graph of these changes coming to Wyoming below:

The Flood Insurance Guru | Wyoming 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 Wisconsin, 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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As we dive deeper into the hurricane season, we also have to prepare for the upcoming changes to flood insurance across the United States. The Federal Emergency Management Agency (FEMA) is rolling out changes when it comes to flood insurance rates across all states in the country.

Today, as we approach our series on the changes on federal flood insurance per state, we'll dive into the Dairyland of America itself, Wisconsin.

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

Wisconsin has a known history of devastating floods in the course of its history and unfortunately, this might happen again considering how climate change has also been changing the course of natural disasters across the United States and the world.

If you may recall, we've seen St. Croix County experience the dangers of deadly flash floods due to heavy rainfall which happened in June 2020. At one point over 50 roads were closed in the area due to flooding. Earlier in the same year, winter storms caused a huge disaster across the South and Midwest; this had Wisconsin experience threats of flash floods and Lake Michigan becoming a catalyst for a lot of flooding in the state.

As we face the consequences of climate change in form of unpredictable water levels of lakes, which are something that Wisconsin is surrounded by, we want to unpack the upcoming changes to your protection against floods: the National Flood Insurance Program (NFIP). The NFIP is looking to update its overall system when it comes to flood policy through Risk Rating 2.0 that will take effect starting this October 2021.

Getting a flood insurance policy for your residential property or commercial building is a great start when it comes to flood preparedness and awareness, but this won't really get you far if you fall out of the loop when it comes to the changes coming to flood insurance nationwide. Regardless if it's from the federal government under FEMA and the National Flood Insurance Program or the private flood market and private insurance companies.

We will understand what the Risk Rating 2.0 changes can mean to flood insurance and answer:

  • What are the impacts?
  • Who will be impacted?
  • The good, the bad, and the ugly
  • When will these changes happen?

 

The NFIP 2.0

The Flood Insurance Guru | Wisconsin Flood Insurance: New Federal Flood Insurance Risk Rating 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. 

This doesn't mean that the cost of flood insurance will be based solely on property value hence not all expensive property or higher-valued homes will get a premium increase or lower-valued homes will automatically get a decrease. You also want to consider what both insurance company considers which is the overall flood data for your property. These things are as follows:

  • Overall flood risk and flood frequencies in the community
  • History of flood damage and flood loss on the property listed
  • History and frequency of flood claims made in the last ten years
  • Flood map designation. Is the property in a high-risk area (high-risk flood zone or the special flood hazard area) or in a low-risk area (low-risk flood zone or preferred zone)?
  • Mitigation efforts made on the property. Are there enough flood openings? Is the lowest floor above the base flood elevation?

Making sure that you are knowledgeable when it comes to these things also gives you a chance to further understand if your flood coverage is reasonable when it comes to the insurance premium rates you're paying. Generally, this also helps you understand future flood risks. This is why we also highly encourage you to reach out to your insurance agent or with our team to get an informed decision before you sign those policy papers and start paying for them.

Nowadays, the biggest potential damage that we face isn't what the flood event inundates, but the concern of what our policies in flood insurance cover or the lack thereof. 

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 Flood Insurance Guru | Wisconsin Flood Insurance: New Federal Flood Insurance Risk Rating 2.0

The Good

Let's start this one with good news or what you'll see in our graph as a green portion. This will affect 44% or 5,669 policies in Wisconsin and generally reflects the good change because there will be a decrease in flood insurance rates for those who are included in this portion.

The decrease in FEMA policy rates will be more than $100 ($1200 per year). This type of change can really help those who aren't getting in the private flood market or want to continue their policies with FEMA.

The Bad

If there's good news, there is also bad news. This is represented by that blue portion in the graph which is composed of 51% or 6,577 policies from FEMA in the state.

This is what we call a bad change for these policyholders since there will be a small increase in flood insurance rates starting this October. Once the Risk Rating 2.0 takes effect, there will be an increase ranging from $0 to $10 per month ($0 - $120 per year). This means that you might not experience any change will flood insurance when you fall to that $0 or you can get up to a $10 increase.

The Ugly

Lastly, we want to talk about the ugly changes coming with the Risk Rating 2.0. This will be shown by the pink and grey portions respectively. Both of these will still deal with getting you an increase in the rates you have with FEMA.

Starting with the pink portion, 3% or 449 policies in Wisconsin will get an increase ranging from $10 to $20 per month ($120 - $240 per year).

Whereas the grey portion will cover only 2% or 254 policies in the state. Despite having a small percentage, it's important to note that this will have the most drastic increase of more than $20 per month (>$240 per year). 

You can see the full pie graph of these changes coming to Wisconsin below:

The Flood Insurance Guru | Wisconsin 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 Wisconsin, 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

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

The Flood Insurance Guru | Washington Flood Insurance: New Flood Insurance Risk Rating 2.0

Washington has one interesting history when it comes to flood events. You will be able to see that most of these floods happened in more recent years ranging from the early 2000s and more recently. This begs asking if this type of flooding can happen again in the near future.

Getting flood insurance policies to protect your property, be it a residential property or commercial building is a great start in making sure that you are prepared for possible flood damage and flood loss.

However, the biggest damage that floods can bring is when someone doesn't have flood insurance just because they don't think they need it or even worst, paying for expensive flood insurance premiums only to get flood coverage for a substantially smaller amount.

It's crucial that you, as a homeowner or business owner, are updated when it comes to the changes that may happen with your flood insurance policy. This is regardless of it coming from the federal government, Federal Emergency Management Agency (FEMA), National Flood Insurance Program, or the private market which is managed by private insurance companies. Today, let's talk about the upcoming changes to federal flood insurance in the Evergreen State.

The National Flood Insurance Program (NFIP) is bound to change its rating system for the people they provide flood policies to. These changes will be a big part of the Risk Rating 2.0 that's going to start impacting the federal flood insurance landscape on October 1, 2021.

We will understand what the Risk Rating 2.0 changes can mean to flood insurance and answer:

  • What are the impacts?
  • Who will be impacted?
  • The good, the bad, and the ugly
  • When will these changes happen?

 

The NFIP 2.0

The Flood Insurance Guru | Washington Flood Insurance: New Flood Insurance Risk Rating 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. 

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 Flood Insurance Guru | Washington Flood Insurance: New Flood Insurance Risk Rating 2.0

The Good

Starting off with the good things, Washington residents who have flood policies with FEMA and the NFIP will be experiencing these changes coming to Risk Rating 2.0. The good thing is due to the fact that there will be a decrease in flood insurance rates with FEMA.

This change is something that 33% or 10,717 policyholders will experience. The decrease itself will be more than $100 (>$1200 per year) which can kick in immediately. In coastal areas like this where there's a constant risk of flood due to storm surge, it can be very helpful for those who are looking to get protected from unwanted flood loss to have this type of decrease.

The Bad

There are also some bad changes happening to residents of Washington when it comes to federal flood insurance. We'll show this as the blue portion of the graph and will cause an increase in flood insurance rates.

This will impact 55% or 17,858 policies in the state who are going to get that small increase. The increase in rates will range from $0 to $10 per month ($0 - $120 per year). Generally, this range can put you in a position where you might not have any change with your flood insurance rates with FEMA which is why there's a $0 there. 

The Ugly

Lastly, we also have the ugly changes which will be shown by the pink and grey portions. These changes will impact a total of 12% of the policies that FEMA has in force in the state and will cause a more significant increase in your rates once the Risk Rating 2.0 kicks in. Let's break them down a bit.

The pink portion will cover the bigger 8% of the two or about 2,566 policies in the state. The increase this time around will be ranging from $10 to $20 per month ($120 - $240 per year) which is why we put this in the ugly change. Virginia has expensive flood insurance premiums from FEMA and when you have to deal with an increase, it may not really help you in choosing federal flood insurance.

On the other hand, we still have to address the grey portion which is the uglier change between the two. This is generally because the increase will be more than $20 per month (>$240 per year). The increase is also expected to have some policyholders even get more than $100 per month increase in their rates with FEMA. This will impact 4% or 1,406 policies in Washington

You can see the full graph of these changes below:

The Flood Insurance Guru | Washington Flood Insurance: New 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. Some would even say that the current NFIP ways are already outdated which really begs for this Risk Rating 2.0 to happen.

If you have questions on these upcoming changes, what are your flood insurance options in Washington, 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   The Flood Insurance Guru | Chris Greene | YouTube    Get Your Quote from Flood Insurance Guru

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 the U.S. Virgin Islands and how they can impact your flood insurance in the future.

The Flood Insurance Guru | U.S. Virgin Islands Flood Insurance: New Risk Rating 2.0

In this blog, we'll talk about the U.S. Virgin Islands, a neighboring island of Puerto Rico. Now, we've already established how this area and being an island can really break you when you're hit with those hurricanes and coastal storms. In fact, The State recently covered how the 2017 flooding left residents in shambles and still waiting for disaster relief. This type of event can really make it difficult for people to find protection from the uncontrollable forces of nature.

Today, we want to talk about the National Flood Insurance Program's (NFIP) upcoming changes to flood insurance rates through the Risk Rating 2.0. This new update will arrive on October 1, 2021, and is expected to impact about 1,400 policies in the U.S. Virgin Islands.

The NFIP 2.0

The Flood Insurance Guru | U.S. Virgin Islands Flood Insurance: New Risk Rating 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. 

It's important to note that this doesn't mean that the National Flood Insurance Program will immediately send out rate increase for people who have higher-valued homes or maybe an expensive property and that lower-valued homes in the U.S. Virgin Islands will immediate get a decrease on flood insurance premiums. FEMA considers a lot of things before finalizing your flood insurance policy and premium, so this doesn't really mean that a cheaper home means that you won't get premium increases.

You also want to consider the following things:

  • Overall flood risk, floodplain devolvement, and flood frequency in the communities
  • History of flood damage and flood loss (also falls under the flood damage assessments by FEMA)
  • History of the flood claim made in the last ten years. Was there more than one payment of claims made in the last ten years?
  • Mitigation efforts on the property. Does the insured property have enough flood openings? Is the lowest floor above the base flood elevation?
  • Flood map designation. Is the property in a high-risk flood zone (flood-prone areas) or a low-risk flood zone

It's important to note that insurers from both the federal government and private market do a lot of research and consideration before finalizing your policy and premium rates. These things can significantly help you to also understand the actual risk you might be facing when it comes to flood. When you're directly sitting close to the gulf coasts or the Atlantic coast, you're also facing a lot of flood risk that comes in the form of risk from storm surge and hurricane season.

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. In this blog, we'll cover the following things:

  • What are the impacts?
  • The good, the bad, and the ugly change.
  • Who will be impacted?
  • When will these changes happen?

The Flood Insurance Guru | U.S. Virgin Islands Flood Insurance: New Risk Rating 2.0

The Good

Let's sail off this Risk Rating 2.0 changes with the good things happening to the residents of the Virgin Islands of the United States. We'll show this as the green portion on the graph.

The good change coming with this is because you're going to get an immediate decrease of up to more than $100 (>$1200 per year) on flood insurance rates with FEMA once the Risk Rating 2.0 kicks in. This is expected to impact most of the residents of the islands, covering about 93% or 1,311 of the policies there.

The Bad

When it comes to bad changes, we'll show this as the blue portion of the graph. This is one of the highlights of today's blog since the ratio between the good and the bad changes generally has the blue overpowering the green. Not in this case though.

The bad change is expected to be experienced by 6% or 89 policies. This means that if you're part of this portion, you can expect a small increase in your flood insurance rates with FEMA and the NFIP. The increase ranges from $0 to $10 per month ($0 - $120 per year).

Generally, this means that you might not even experience a change in your rates when the Risk Rating 2.0 kicks in since you'll be sitting with that $0 per month change.

The Ugly

Finally, we also want to talk about the last percentage you'll see with these updates coming to the Virgin Islands. We'll show this as the pink and grey portions which will still cause an increase in flood insurance rates however with a more significant amount. Let's break these two down.

The pink portion will cover 1% or about 7 policyholders. If you're one of these lucky people, you can expect an increase in your flood insurance rates with FEMA that ranges from $10 to $20 per month ($120 - $240 per year).

The grey portion on the other hand will cover less than 1% or about 4 policies here. However, despite having the smallest portion in these updates across the United States, the grey portion still packs a punch.

The increase in flood insurance rates will now be more than $20 per month (>$240 per year). This may mean that you might start seeing an increase that sits around $100 per month ($1200 per year) or maybe more once the Risk Rating 2.0 starts.

You can see the full graph of these changes below:

The Flood Insurance Guru | U.S. Virgin Islands Flood Insurance: New 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. Some would even say that the current NFIP ways are already outdated which really begs for this Risk Rating 2.0 to happen.

If you have questions on these upcoming changes, what are your flood insurance options in the Virgin Islands, 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   The Flood Insurance Guru | Chris Greene | YouTube    Get Your Quote from Flood Insurance Guru

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

The Flood Insurance Guru | South Dakota: New Flood Insurance Risk Rating 2.0

Today, we want to talk about the upcoming changes to the National Flood Insurance Program (NFIP) for South Dakota. These changes will be brought by the new Risk Rating 2.0 and considering how, at the time of writing, the northern parts of the state have been subjected to flash floods due to a significant amount of rainfall, we should understand how our shield against these flood threats will impact us.

It's equally important to note that the state is split in half by the Missouri River which is known for its massive contribution to major floods across the state. The Risk Rating 2.0 will start on October 1, 2021.

The NFIP 2.0

The Flood Insurance Guru | South Dakota: New Flood Insurance Risk Rating 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. 

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 Flood Insurance Guru | South Dakota: New Flood Insurance Risk Rating 2.0

The Good

First, let's talk about these changes coming to flood insurance rates starting with the good ones. We'll show this as the green portion in the graph and will be a good change because of how it impacts rates from FEMA.

There will be a decrease of more than $100 (>$1200 per year) when the Risk Rating 2.0 kicks in and will impact 31% or 1,148 policies. This can really help a lot of people who are struggling to keep up with the premium that FEMA is asking for or for those who are opting to go for the federal flood insurance.

The Bad

Now, if there are good things, we can also expect to have bad things with these changes on federal flood insurance rates. This time, we'll show it as the blue portion of the graph which you'll see covers the biggest chunk out of South Dakota flood policies.

The Ugly

Lastly, we want to move into the ugly changes coming to the state. We'll show this as the pink and grey portions respectively. Each will cause a significant increase in flood insurance rates from FEMA and one will be definitely an uglier change between these two.

The pink portion will impact 5% or 192 policies in South Dakota. This time around, there's going to be an increase ranging from $10 to $20 per month ($120 - $240 per year) on your flood insurance rates.

The grey portion, which we mentioned is an uglier change, will cover 4% or 160 of the policies FEMA has in force in the state. If you're part of this portion, you can expect an increase in your rates of more than $20 per month (>$240 per year). This can cause you to have an increase of more than $100 on FEMA rates once the Risk Rating 2.0 kicks in.

You can see the full graph of these upcoming changes below:

The Flood Insurance Guru | South Dakota: New 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 South Dakota, 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   The Flood Insurance Guru | Chris Greene | YouTube    Get Your Quote from Flood Insurance Guru