October 1 2021 NFIP Flood Insurance Changes
The National Flood Insurance Program (NFIP) will change how they rate the risk of flooding on all properties through the FEMA new program Risk Rating 2.0 – Equity in Action. Any home buyers who close on their purchase after yesterday, October 1st, will be insured under the new approach to rating the flood risk of a property/home.
In the past it was primarily based on a home’s elevation including any systems such as A/C units in each flood zone category. Now the approach to risk rating will be based on several variables such as the elevation, flood frequency, type of flooding (river, storm surge, coastal erosion, heavy rainfall), and cost to rebuild.
Please contact your insurance agent to determine what changes you may face in the future if you already own a property requiring flood insurance. According to FEMA, 12% of Florida properties may have a premium increase.