We have covered most of the changes with federal flood insurance in Illinois however that episode is mostly focused on Illinois as a state, not its respective cities. We want to help you understand the specifics of the impact of these changes especially since we're gearing ever closer to the update on the National Flood Insurance Program (NFIP).

Illinois Flood Insurance: Risk Rating 2.0 Updates for Naperville, IL

Today, let's talk about Naperville, Illinois, home to Bulls, the Millennium Park, and The Bean, and how residents are going to be impacted by the upcoming Risk Rating 2.0 changes with the National Flood Insurance Program (NFIP) and the Federal Emergency Management Agency (FEMA).

Risk Rating 2.0: What Changes?

This is what FEMA calls equity in action when it comes to making the cost of flood insurance policies fairer per policyholder. This simply means that when it comes to flood insurance rates, a lot of things will start to change with the NFIP and FEMA.

Generally, this is because property values for each individual property will be accounted for when finalizing your quote and flood insurance premiums with the National Flood Insurance Program (NFIP). In turn, the NFIP and FEMA make sure that you will get accurate flood insurance rates for your policy.

It's important to note, however, that this won't mean that the cheapest flood insurance will go automatically to lower-valued homes, and higher-valued homes or expensive properties will cause a big headache for the property owner. It's equally important that we take into account, just like FEMA does and the private flood insurance industry, what's called flood risk variables from expansive flood studies. There are things that are staying and changing when it comes to calculating your flood risk score.

The remaining features are as follows:

  • Zone designation in the flood insurance rate map (e.g. special flood hazard areas (SFHA) or preferred flood zones)
  • Distance to a body of water such as a river, lake, or even the coastline
  • Prior flood insurance claims or flood claims made with the property
  • Policy assumption and grandfather rule

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

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

Illinois Flood Insurance: Risk Rating 2.0 Updates for Naperville, IL

The Good

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

The good changes will involve an immediate decrease in flood premiums with FEMA. This decrease can go up to more than $100 (>$1200 per year) and will impact 40.4% or 1,037 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 601 or 25.6% 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 371 or 14.8% of the national flood insurance policies in force. The immediate decrease ranges from $50 to more than $100 per month ($600 - >$1200 per year).

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

The Bad

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

The increase will range from $0 to $10 per month (up to $120 per year) and will impact about 2,201 or 54.3% of the policies in the city itself. Now, this increase may seem so small, but you have to consider that this takes the biggest percent out of the population in DuPage.

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

The Ugly

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

First, the ugly change will be covering about 106 or 2.6% 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 83 or 2% 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 DuPage residents fall on the ugliest side. This mostly involves about 24 or 0.6% of properties in the city. Although it's a very small number of people, you have to realize that the increase ranges from $50 to more than $100 per month ($600 to >$1200 per year in annual premium).

This can really make it difficult to go into federal flood insurance and even a harder experience if the private flood insurance market is not available to protect you from floodwaters. Regardless of where you fall on these three, considering that the average premium across Illinois is about $1100, this type of increase can really hurt your budget and we won't even blame you if you want to get private policies.

Illinois Flood Insurance: Risk Rating 2.0 Updates for Naperville, IL

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.

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

Get Your Flood Risk Score Here!

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.

We have covered most of the changes with federal flood insurance in Illinois however that episode is mostly focused on Illinois as a state, not its respective cities. We want to help you understand the specifics of the impact of these changes especially since we're gearing ever closer to the update on the National Flood Insurance Program (NFIP).

Illinois Flood Insurance: Chicago Risk Rating 2.0 Update

Today, let's talk about Chicago, Illinois, home to Bulls, the Millennium Park, and The Bean, and how residents are going to be impacted by the upcoming Risk Rating 2.0 changes with the National Flood Insurance Program (NFIP) and the Federal Emergency Management Agency (FEMA).

Risk Rating 2.0: What Changes?

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

It's important to note, however, that this won't mean that the cheapest flood insurance will go automatically to lower-valued homes, and higher-valued homes or expensive properties will cause a big headache for the property owner. It's equally important that we take into account, just like FEMA does and the private flood insurance industry, what's called flood risk variables from expansive flood studies. There are things that are staying and changing when it comes to calculating your flood risk score.

The remaining features are as follows:

  • Zone designation in the flood insurance rate map (e.g. special flood hazard areas (SFHA) or preferred flood zones)
  • Distance to a body of water such as a river, lake, or even the coastline
  • Prior flood insurance claims or flood claims made with the property
  • Policy assumption and grandfather rule

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

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

Illinois Flood Insurance: Chicago Risk Rating 2.0 Update

The Good

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

The good changes will involve an immediate decrease in flood premiums with FEMA. This decrease can go up to more than $100 (>$1200 per year) and will impact 52.3% or 6,408 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 3,374 or 27.5% 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 3,034 or 24.7% 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 5,134 or 41.9% 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 Cook.

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 384 or 3.1% 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 251 or 2% 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 Cook residents fall on the ugliest side. This mostly involves about 86 or 0.7% of properties in the city. Although it's a very small number of people, you have to realize that the increase ranges from $50 to more than $100 per month ($600 to >$1200 per year in annual premium).

This can really make it difficult to go into federal flood insurance and even a harder experience if the private flood insurance market is not available to protect you from floodwaters. Regardless of where you fall on these three, considering that the average premium across Illinois is about $1100, this type of increase can really hurt your budget and we won't even blame you if you want to get private policies.

Illinois Flood Insurance: Chicago 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.

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

Get Your Flood Risk Score Here!

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

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

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