New rates for all properties insured through the National Flood Insurance Program (NFIP) will go into effect nationwide on October 1, 2021. FEMA is pairing state-of-the-art technology with NFIP’s mapping data to establish a new risk-informed rating plan—Risk Rating 2.0, the largest change to the program in 50 years.
Risk Rating 2.0 uses the latest actuarial practices to set fairer, risk-based rates that better reflect a property’s true flood risk. All NFIP policies—including single-family homes, multi-unit, and commercial properties—will change over to the new rating system.
BUDGETING FOR 2021 AND BEYOND
On April 1, 2021, business and condominium policies rated in the A Zone saw an increase of 1.5%–3.0%.
On January 1, 2022, the Preferred Risk Policies rated in the X Zone will see an increase of 13%.
The new rating plan will comply with statutory caps, preventing significant premium increases by offering a glidepath discount to existing policyholders and new homeowners buying homes from existing policyholders. We’ll help you make informed decisions about protecting your property.