On April 1, 2022, FEMA began implementing the Risk Rating 2.0 system on all flood insurance policy renewals. Last October, all new flood insurance policies were rated using the new methodology.
FEMA’s new rating methodology, Risk Rating 2.0: Equity in Action, considers specific characteristics of a building – the Where, How, and What – to provide a more modern, individualized, and equitable flood insurance rate. Understanding these characteristics helps to identify the building’s unique flood risk and associated premium.
To help understand how your premiums are being calculated under Risk Rating 2.0, FEMA has developed a RATE EXPLANATION GUIDE and a DISCOUNT EXPLANATION GUIDE. These documents can be downloaded from FEMA’s Risk Rating 2.0: Equity in Action web page.
It’s a good idea to meet with your insurance agent annually to discuss your home or business policies, premiums, coverage amounts, and deductibles. Most homeowners insurance does not cover flood damage. Flood insurance is a separate policy that can cover buildings, the contents in a building, or both. There is typically a 30 day wait period before a flood insurance policy is effective. There are just a few exceptions to FEMA’s 30-day wait period and with the 2022 Hurricane Season less than 2 months away, now is the time to give your agent a call !!
It’s a good idea to meet with your insurance agent annually to discuss your home or business policies, premiums, coverage amounts, and deductibles. Most homeowners insurance does not cover flood damage. Flood insurance is a separate policy that can cover buildings, the contents in a building, or both. There is typically a 30 day wait period before a flood insurance policy is effective. There are just a few exceptions to FEMA’s 30-day wait period and with the 2022 Hurricane Season less than 2 months away, now is the time to give your agent a call !!
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