Here are the 10 THINGS YOU NEED TO KNOW:
- Risk Rating 2.0 is the biggest change to FEMA Flood Insurance pricing in the 54-year history of the government program
- What’s News? FEMA Risk Rating 2.0 prices properties by individually, based on elevation, distance to water, replacement cost, what flood zone a property is on, and several other important data points
- Per FEMA, 77% of all FEMA policies will see a renewal price increase *
- While pricing is likely to go up for most of the renewals, FEMA has capped the increase in any one year at 18% *
- If a property is on a flood zone – denoted by AE, AH, VE Flood Zone determinations – a homeowner is still required to purchase flood insurance to secure a mortgage
- A seller with an existing FEMA policy can assign a policy in good standing to a new owner prior to or at close of the sale
- Elevation Certificates are now optional — because elevation data is part of the Risk Rating 2.0 model — yet may be used to bring down the cost of flood insurance
- FEMA will continue to offer flood insurance at its standard policy limits:
- $250,000 coverage for the property
- $100,000 coverage for property contents
- $2,500 deductible
- FEMA has created a website to view projected price changes, due to Risk Rating 2.0. Check your own property address for an insight on the changes.
- 10. Homeowners can seek private flood insurance markets to shop their FEMA flood renewals.
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* https://www.fema.gov/flood-insurance/risk-rating