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

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

Tennessee is known for its hot chicken, barbeque, whiskey, and country music. However, lately, the state is also hitting the news for a different reason that no one likes: flood events.

Earlier this year, Nashville went through a massive flood and with the climate becoming warmer and wetter, flood insurance in the state also becomes more expensive. We've already covered how certain additional coverage like the Increased Cost of Compliance (ICC) and when it's best to file that flood claim for the Nashville flood.

These are just examples of the flood risk that homeowners across the Volunteer State. Getting protection from flooding through flood insurance policies is a great start in making sure that you get to bounce back from flood damage however it's equally important to be up-to-date when it comes to the changes happening in the industry.

A lot of homeowners get surprised when they're moved into a high-risk flood zone or get premium increases since it's something that they weren't aware will happen in their respective communities.

Regardless if you're getting insurance from the federal government or private flood insurance companies, the landscape of the flood insurance industry is ever-changing. Today, we'll be covering the changes coming to federal flood insurance. The National Flood Insurance Program (NFIP) will be changing with the Risk Rating 2.0 happening at the latter part of this year, and we want to help you understand how this can impact your flood insurance with FEMA in the future.

Nowadays, the actual flood risk we face isn't the flood damage after the flood, but the concern of flood coverage or the lack thereof. Is it enough? Are the flood insurance premiums reasonable for the coverage you will get?

The Risk Rating 2.0 will start on October 1, 2021.

The NFIP 2.0

The Flood Insurance Guru | Tennessee: 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. 

Note, this doesn't mean that property values will be the sole determiner of the flood insurance rate you'll get with FEMA and the National Flood Insurance Program. There's a lot of things that go into this which FEMA has been researching thoroughly. Equally, you should also consider the things we'll list below because not all expensive property or high-valued homes will experience rate increases, and not all lower-valued homes will get a decrease.

These are the things that any flood insurer look into when determining the cost of flood insurance for your listed property:

  • Overall risk of flooding and flood frequencies in communities
  • Designation in the flood zone map/flood map. Is the insured property in a high-risk flood zone or low-risk flood zone?
  • Mitigation efforts such as making sure that you have enough flood openings and having your lowest floor raised higher than the base flood elevation levels in your area.
  • History of flood damage and flood loss
  • History and frequency of flood insurance claims or flood claims in the last ten years

Instead of leaving it to the companies to determine this for you, it's best to also have a great level of understanding of the actual risk that you might face since it impacts the overall flood insurance rating long term. This is why we want to help you find a better investment in flood insurance that goes beyond the policy itself

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 | Tennessee: New Flood Insurance Risk Rating 2.0

The Good

Let's start this off with some good news coming with the Risk Rating 2.0 update. We have this shown as the green portion of the graph.

The good change will impact 28% or 7,581 of the policies that FEMA has in the state. This will be in form of a significant decrease in flood insurance rates that can be more than $100 (>$1200 per year).

The decrease itself can help a lot of people who are looking to get flood insurance through the federal government and in times where risks like the March Nashville flood can be enough for private insurance carriers to back out, this decrease will be the key to easing that struggle with expensive FEMA insurance.

The Bad

Now, if there is good news, there's also bad news which is very important to note especially for Tennessee since this will take the biggest chunk in the Risk Rating 2.0 update for the state.

About 59% or 16,316 policies will be part of this bad change coming to Tennessee. This brings a crescendo of unwanted tunes when it comes to flood insurance rates since you can expect a small increase from FEMA.

The increase will range from $0 to $10 per month ($0 - $120 per year) which means that you might not even get any change with your flood insurance rates and have to stick with whatever you're paying now. This is why the range starts at the $0 mark.

The Ugly

Lastly, we want to talk about the most important portions since these will pack a punch for those impacted: the pink and grey portions. Both will bring an increase to flood insurance for those impacted however it's notable that the grey portion will have a significantly uglier change. Let's break them down.

The pink portion will impact 8% or 2,162 policies in Tennessee. This will bring an increase of $10 to $20 per month ($120 - $240 per year) for those impacted. This is why it's very much important to heed FEMA's tips on protecting yourself from flood such as installing flood vents as this also protects you from experiencing very expensive flood insurance rates.

On the other hand, the grey portion will impact the last 5% or 1,448 policies in the state. This is what we mentioned before as the uglier change since flood insurance rate increase will be more than $20 per month (>$240 per year). You might even start seeing a $100 increase on your flood insurance per month.

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

The Flood Insurance Guru | Tennessee: 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 Tennessee, 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 Mississippi and how they can impact your flood insurance in the future.

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

Mississippi has had a very long history of flooding that even up to this date, some people are afraid that history might repeat itself with these devastating floods from way back. With climate change only causing more devastating floods across the U.S. and the Magnolia State itself, we want to make sure that everyone is ready for these possible events especially now that we're officially diving into the hurricane season.

For this one, we want to cover the upcoming changes to federal flood insurance through the National Flood Insurance Program (NFIP), what are staying, and what are changing with flood insurance, rates, and premiums once the Risk Rating 2.0 kicks in.

The Risk Rating 2.0 update is expected to fully roll out on October 1st.

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

The Good

First, it's important to note that there will be good changes coming to Mississippi with this update. Although it may be significantly lower compared to other states, a lot of people will still experience this green slice.

16% or 10,047 policies from FEMA will get an immediate decrease on their flood insurance rates by more than $100 (>$1200 per year). This can really help if you're currently paying expensive federal flood insurance premiums or if your property is very close to any of the numerous lakes within the state or the Mississippi River itself.

The Bad

Now, let's talk about the biggest slice with this change coming to Mississippi flood insurance: the blue slice or bad change as we'd call it. This is because this slice represents the start of getting an increase for your flood insurance rates with your NFIP policy.

The increase ranges from $0 to $10 per month ($0 - $120 per year). It will impact a whopping 74% or 44,643 of the active federal flood insurance policies in the state. This means that you might not get any change or increase on your rates with that $0 or you might start paying for that $10 extra starting this October.

The Ugly

Last but not the least, we have some significant ugly changes coming to residents of the Magnolia State which we'll show as the pink and grey slices. Now, we call this an ugly change because of the significant increase it will bring to those included in these portions.

The pink slice will cover 6% or 3,912 active FEMA policies in the state. Same with the previous one, this also deals with an increase in rates, but this time around it's going to range from $10 to $20 per month ($120 - $240 per year). 

On the other hand, we have the uglier change from the grey slice. This is expected to affect 4% or 2,716 policies in Mississippi. We deem this an uglier change because the increase for these people will be more than $20 per month (>$240 per year). This simply means the people in that 4%, the lowest increase is at $20 so you may start seeing $100 or even more flood insurance rate increase with this slice.

You can see a full graph of these changes below:

The Flood Insurance Guru | Mississippi 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 Mississippi, 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 Kansas and how they can impact your flood insurance in the future.

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

Today, we want to go over the changes coming to federal flood insurance for the Sunflower State of Kansas. We want to unpack the good, the bad, and the ugly changes that the National Flood Insurance Program's (NFIP) Risk Rating 2.0 and how it can impact your flood insurance in the future.

A lot of things will come into play on the rating structure for your flood insurance policy with FEMA. Flood insurance rates won't solely base on the property values in the market, so property owners should be aware of these changes. Things like the history of flood claims, where your lowest grade compared to the base flood elevation that the state or your community has, and risk of flooding (to name a few) are accounted for with this new rating methodology for the National Flood Insurance Program (NFIP).

The Risk Rating 2.0 will take effect on October 1st, 2021.

The NFIP 2.0

The Risk Rating 2.0, or commonly known as NFIP 2.0 as well, is more of equity in action. 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 flood insurance rate as this would now be based on the value of individual properties or homes starting this October.

The Flood Insurance Guru | Kansas 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.

Truth be told, the actual flood risk nowadays lies in your protection against flooding or the lack thereof. 

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

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

The Good

First, let's talk about the good change coming to the residents of Kansas. This is represented by that green slice or range. This will impact 38% or 3,694 policies in the state.

When it comes to flood insurance rates, the policyholders under this slice will get an immediate decrease of more than $100 (>$1200 per year). It's important for us to remember that the current average for federal flood insurance in Kansas averages about $980, this decrease can really help NFIP policies be another cheap flood insurance option.

This also somewhat helps people who can't get flood policies through the private flood insurance market. It's important to note that not all property owners in Kansas can get policies from private insurance companies or simply private insurers.

This market can decide when to and when not to provide their services for a property or even an entire community. We've seen this happen in Texas where private sectors of the insurance industry would be in moratoriums and/or non-renew policies after a flood claim just because the communities are becoming more flood prone.

The Bad

Now, when it comes to the blue slice which will impact most of Kansas policies. This slice is composed of 56% or 5,356 policies that will experience a bad change when it comes to flood insurance rates.

This is slice will bring an increase to rates ranging from $0 to $10 per month ($0 - $120 per year). The increase itself will bring up your premium to that $1000 mark easily once these changes kick in October 1st.

The Ugly

Lastly, we want to cover the last two slices you'll see with the NFIP 2.0 changes. It's important to put out a disclaimer that these two may have the smallest percentage, but they're the ones that pack a lot of punch when it comes to the changes to federal flood insurance. Let's break down the pink and grey slices.

The pink slice will impact 3% (296 policies) in the state and will bring an increase that ranges from $10 to $20 per month ($120 - $240 per month). Whereas another 3% (390 policies) goes to that grey range where the increase in flood insurance rates is uglier than the previous one.

This is due to the fact that the increase will be more than $20 per month (>$240 per year). This means that when it comes to that grey range, your increase can go up to more than $100 per month.

You can see a full graph of these changes below:

The Flood Insurance Guru | Kansas 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 Kansas, 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 Indiana and how they can impact your flood insurance in the future.

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

The Hoosier State of Indiana, home to Pacers and Indianapolis Indians, has had its fair share of experiences when it comes to flood. If we even just look at the recent years, the state has been subjected to massive floods due to torrential rains and flash floods were always the constant flood risk that locals of the state face especially during the hurricane season.

It's important to note that flash floods nowadays can turn a low-risk flood zone into very flood-prone areas in just a snap of a finger. We've seen this happen in low-lying areas where surface water that's supposed to be sipping into the ground instead runs off to communities causing massive and unexpected flood damage to those who are impacted.

Today, we want to talk about the upcoming changes to your federal flood insurance in Indiana. The National Flood Insurance Program is about to change its flood insurance rates through the Risk Rating 2.0, and we want to help you unpack the good, the bad, and the ugly changes with this new update.

This update will start to take effect on October 1st, 2021.

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. 

When we say that this will be based on the value of your property, this doesn't mean that FEMA won't be considering other data they have gathered in relation to how your flood insurance premiums will turn out. The National Flood Insurance Program is also expected to consider the following (to name a few):

  • Risk of flooding in the general community you're in
  • Where your lowest grade sits compared to the local base flood elevation
  • History of flood claims, damage, and how many inches of water you get when there's a flood

The Flood Insurance Guru | Indiana 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.

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

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

The Good

First, let's talk about the biggest slices you'll see in these reports. We want to start with the good news or the good change coming to FEMA flood insurance policyholders in Indiana.

About 46% or 9,163 policies will be in that good change area. This is due to the fact that flood insurance rates will immediately decrease for these residents by $100 or more per month ($1200 per year).  Considering how Indiana's average premium with FEMA is about $1,100, this can really help you get cheap flood insurance or make FEMA an equally viable option when it comes to saving money in flood insurance even if you're paying $2000 or more in premiums every year.

The Bad

Now, moving forward to the blue slice or what we'd call the bad change. This is due to the fact that policyholders from FEMA will get an increase in their flood insurance rates.

About 47% or 9,491 policies in Indiana will go through this increase starting October. The increase ranges from $0 to $10 per month ($0 - $120 per year). Although this may seem a small change, it's still something that you need to prepare for especially with the Risk Rating 2.0.

Since flood insurance rates are determined through the value of your property, flood mitigation efforts, and all that, you might start paying for more than $1200 on average for your federal flood insurance.

The Ugly

Lastly, we want to talk about the last two slices: the pink and grey ones. Now, these two will get you an increase on your flood insurance rates still and are somewhat the same. However, it's important to note that one is a significantly uglier change compared to the other. Let's do a breakdown of each slice.

The pink slice is composed of 4% or 892 federal flood insurance policies in Indiana. We're talking about almost a thousand residents getting an increase on their rates starting this October. This increase starts at $10 and maxes at $20 per month ($120 - $240 per year).

On the other hand, we have the grey slice which is the uglier change between these two. This will impact 3% or 536 policies in Indiana. Now, when it comes to federal flood insurance rate increase, it's going to be uglier as well.

The increase will start at $20 per month and can only get higher from there. We're talking about an increase to your premiums of more than $240 per year. This also means that depending on your property's value and data like flood history, flood claims history, and flood mitigation efforts, you may deal with more than a $100 increase per month.

These changes can easily move your base flood insurance premiums to more than $1500 once the Risk Rating 2.0 starts on October 1st.

A full graph of these changes can be seen below:

The Flood Insurance Guru | Indiana 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 Indiana, 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 Illinois and how they can impact your flood insurance in the future.

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

When it comes to flood, Illinois is no stranger to this devastating natural disaster especially when you start to look at the history of floods. Even in recent years, the state seems to get no breaks from this. We're talking about the June 2008 flood, the 2011 Spring Flood in the Lower Mississippi River Valley, and the April 2013 Illinois River Flood.

Now, we want to talk about one of your flood insurance options and the one that you can always run to once that private flood option starts to pull away in times of need: the federal flood insurance from the National Flood Insurance Program (NFIP). Specifically, we're going to go over the good, the bad, and the ugly changes that the update to the NFIP will bring with the Risk Rating 2.0

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. 

Since these flood insurance rate increases or decreases depends on the risk rating that FEMA has through conducting long-term research on flood damage, risk of flooding, base flood elevation, flood-prone areas, flood risks like storm surge, runoff, and flash floods, flood maps and types of flood that the area experienced, this can mean that not having the right mitigation efforts can cause you to pay for higher rates.

The Flood Insurance Guru | Illinois 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 continues to provide flood coverage on both building and contents wherein it maxes to $250,000 and $100,000 respectively.

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

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

The Good

Starting with the extreme range first, let's talk about that green slice or what we call the good change. This will impact 43% or 15,715 policies in Illinois once the Risk Rating 2.0 starts to take effect in October. 

We call this area a good change because it causes an immediate decrease in your flood insurance rates of $100 per month or more. That totals to a minimum of $1200 annually. This can really help policyholders especially in a state like Illinois where the average flood insurance premium is about $1100 with FEMA's policies.

This can help a lot of people, especially those who are in high-risk flood areas where private insurers may turn away. Since FEMA and the NFIP are bound by the federal government to provide policies for all citizens of the United States, having those lower premiums can really help more people get protected from flood damage.

The Bad

Now, let's talk about another extreme range you'll see with the NFIP 2.0. You'll see this in that blue range or slice which we also call the bad change.

This bad change will impact the largest portion of Illinois federal flood insurance as it will cause an increase to flood insurance rates of 49% or 18,449 policies in the state. The increase will start at $0 and can go up to $10 per month ($0 - $120 per year). Properties impacted by this change will start to pay for more than $1200 per month depending on the value of the property itself.

This also means that the premium increases slightly on your annual payments for FEMA policies. Although it may not sound a lot, if you have higher-valued homes, you might not find this small change to be small at all. It's important to note that this time around, the flood policy price increases in direct correlation to the market value of your property.

The Ugly

Lastly, we want to cover the last two slices you'll see in these reports which we call the ugly change. This is because there will still be an increase for rates on the impacted policies however it will become more significant compared to the previous one. We're going to show this as the pink and grey slices respectively.

First, the pink slice or about 5% (2,052 policies) will experience an increase on their rates from $10 up to $20 per month ($120 - $240 per year).  Whereas, that grey slice will affect 4% (1,466 policies) and will bring an increase of more than $20 per month (>$240 per year) for flood insurance policies in Illinois.

These changes can really blow your insurance premiums right out of the water and cause a burden when it starts to take effect in October since we're talking about a jump from $1100 to $1300 or more.

You can see the full graph of these changes below:

The Flood Insurance Guru | Illinois 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 Illinois, 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 Idaho and how they can impact your flood insurance in the future.

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

Today, let's go down to the Gem State of Idaho to understand the upcoming changes that are going to come from the National Flood Insurance Program's (NFIP) new Risk Rating for flood insurance across the U.S. The state has a long history of floods, which have become the most common natural disaster that we're facing more than anything else, throughout the years and this is most evident when you look at its Creeks and the Boise River itself. These bodies of water are becoming more and more of a flood risk towards its communities.

This type of history is bound to impact flood insurance with the federal government, so we want to unpack the good, the bad, and the ugly changes for the cost of flood insurance in Idaho with the Risk Rating 2.0. We want to cover what will stay and what will be different once this update kicks in on October 1st, 2021.

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 in action. 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 flood insurance premiums as this would now be based on the value of your property or home starting this October. 

The current market value of the property will depend on the following:

  • Flood map zoning
  • How many of inch of water there is during rains and flood frequency
  • History of flood claims and flood damage on the individual property
  • The lowest grade compared to the state's base flood elevation levels
  • Flood openings and other mitigation efforts

The flood insurance coverage from the NFIP will stay on that $250,000 for building damage and $100,000 for personal or contents damage and will still have to follow that 30-day waiting period for the federal flood insurance policy to take effect on your insured building.

The Flood Insurance Guru | Idaho 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.

Nowadays, floods aren't the only threat we're facing, but it's also important to keep in mind that the actual flood risk you might be facing is not having the best protection and flood policy for your properties.

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

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

The Good

First, we want to talk about one of the extreme ranges you'll see in this update or what we'd like to call the good change. This is generally represented by that green section and is what we call a good change because this will bring an immediate decrease of $100 ($1200 per year).

This is something that about 1,580 or 28% of the current active flood insurance policies from FEMA in the state of Idaho. The decrease itself can be very helpful especially if you're currently paying that premium that averages around $770.

This can really help a lot of people especially those who might be mapped into the high-risk flood zone like Flood Zone A, which are generally homes that sit relatively close to a natural water source or body of water like lakes, rivers, and creeks. This change helps those people to get the right coverage from flood damage through the federal government which is known to take on all risks.

Unlike the private flood insurance market, FEMA and the NFIP don't get to choose which risk they will take or simply put who they gave their flood insurance to. Despite having a significantly shorter waiting period on flood policies from private insurers, it's important to keep in mind that the private market can choose to opt-out of a community or overall reject a person's purchase of flood insurance due to how high the risk for flooding there is on that area.

The Bad

Now, we move forward to the next extreme range in these changes which is generally a bad change for those impacted. This blue range will impact 63% or 3,579 policies in Idaho and will bring an increase to your flood insurance rates of $0 to $10 per month ($0 - $120 per year).

This change can easily put your premiums up along the range of $800 to $900 easy depending on the value of your property. Although this isn't an immediate increase, once you move into these new Risk Rating changes, you're going to start paying for this higher rate.

The Ugly

Lastly, we want to move into the smallest sections of the changes which are separated by that pink and grey range in FEMA's reports. Here we're showing it as the pink section or slice and the grey section or slice. Let's dive into these two and understand why they're the ugly change.

First, we have the pink slice which will cover 6% or 317 FEMA policies in Idaho. This indicates an increase from $10 to $20 per month ($120 - $240 per year). The increase will easily bring your premiums to $900 or even $1000 once this change kicks in.

On the grey range, however, this brings the uglier change between the two and will impact 3% or 169 policies in Idaho. This will cause an increase to flood insurance rates of more than $20 per month (>$240 per year). This blows your premiums out of the water and into that $1000 or more.

Here's a full graph for the changes coming to Idaho:

The Flood Insurance Guru | Idaho 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 Idaho, 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 Hawaii and how they can impact your flood insurance in the future.

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

Hawaii has been subject to major flooding in very recent years. We're looking at the incidents in the Ka Loko Reservoir in 2006, the series of thunderstorms over Kaua'i and Oahu in 2018, and the most recent one that flooded the Kaupakalua Dam in the earlier parts of March this year.

In times like this when floods seem to be always there and ready to hit you hard, we want to help our friends in Hawaii understanding their flood insurance when it comes to the federal government. We want to cover the good, the bad, and the ugly changes coming with the National Flood Insurance Program (NFIP) Risk Rating 2.0 on October 1st and what you can do to better prepare and protect yourself from floods.

It's important to note before we move forward that there is still that private flood insurance option available that is known for having shorter waiting period for policies to take effect. However, there's a chance that some communities or areas where the flood risk being too high will cause them to pull the plug in providing insurance for that area.

So, if you want to opt-in with FEMA and the National Flood Insurance Program, you should start as soon as possible so that you can maximize that 30-day waiting period.

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 | Hawaii 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.

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

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

The Good

To better understand these ranges, it's best that we discuss each change per item on the current FEMA flood policies in force in Hawaii right now. Out of about 61,400 flood insurance policies, 13% (7,924 policies) of these will experience what we call good change.

This change means that the 13% of on that green range will get an immediate decrease of more than $100 on their flood insurance rates ($1200 per year). So that average of $700 premium will really go down for those property owners impacted by this upcoming update.

The Bad

On other hand, we're going to look at the most extreme range that will impact most of these policies under FEMA in Hawaii. This is the blue range in FEMA's reports or the 78% (48,098 policies) will go through this bad change.

We call this a bad change because there's going to be a $0 to $100 per month increase on flood insurance rates ($0 - $120 per year) on your flood policies starting this October.

The Ugly

Lastly, let's go over the ugly changes which are represented by the smallest ranges in these reports. The pink and the grey ranges are 5% (2,812 policies) and 4% (2,549 policies) respectively. Both of these will bring an increase to FEMA policyholders and can be very drastic for those impacted. Let's unpack these increases.

Starting with the 5% or about 2,812 FEMA policies will get that increase on flood insurance rates starting at $10 and up to $20 per month ($120 - $240 per year). This can get your premiums to more than $900 with FEMA once this change takes effect in October.

On the other hand, the 4% or 2,549 policies impacted under that last range will get an even uglier change because this will get you an increase of more than $20 per month (>$240 per year). This generally means that your flood insurance premiums will start at that $1000 mark easily and can blow it right out of the water once the NFIP 2.0 takes effect in October.

We made a graph of these changes below:

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 Hawaii, 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