All Preferred Risk Policy customers are transitioning to the National Flood Insurance Program’s (NFIP’s) new pricing methodology, Risk Rating 2.0: Equity in Action, and are now able to personalize their flood insurance coverage.
Here are 7 things you should know:
- You can now choose your building and contents policy limits and deductibles.
- Your insurance rate is based on your property’s unique flood risk.
- Your insurance rate now incorporates more flood risk variables, rather than just your property’s flood zone.
- You will see claims history considered in the premium if the property has two or more flood losses, with one loss under the new pricing methodology.
- You may be eligible for a Community Rating System (CRS) discount if you live in a participating community, regardless of flood zone.*
- You may be able to take advantage of mitigation discounts, such as elevating machinery and equipment, or installing proper flood openings.
- Your renewal premium may be lower, remain the same, or increase. Premium increases will be gradual and subject to the rate caps imposed by Congress, most within the 18% annual cap.
Visit fema.gov/flood-insurance/risk-rating or contact your flood insurance provider to learn how this new pricing system helps you protect the life you’ve built.
* In participating CRS communities, full risk premiums are discounted to reflect the reduced flood risk resulting from the community’s mitigation efforts that exceed the minimum requirements of the NFIP.