NFIP Risk Rating 2.0 Released
On April 1, the Federal Emergency Management Agency (FEMA) unveiled changes to the National Flood Insurance Program (NFIP), commonly referred to as Risk Rating 2.0. Risk Rating 2.0 is meant to provide more specific, accurate information about properties covered by the NFIP.
Materials released by FEMA show changes under Risk Rating 2.0. FEMA said the small population seeing the largest increases included high-value homes in high-risk areas.
The changes will go into effect for new policies on October 1, 2021 and for renewals on April 1, 2022. PIA is working with industry and FEMA to ensure this aspect will be workable for independent agents servicing their clients.
Risk Rating 2.0 had originally been scheduled to go into effect in 2020, but it was delayed after congressional offices expressed concerns over potential premium hikes on their constituents. With the plan and timeline finally released, PIA is analyzing the details and will be issuing more analysis in the coming weeks.