What You Need to Know about the New Flood Rating 2.0

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What is Risk Rating 2.0?

Flood Risk Rating 2.0 is a redesigned version of the original rating method for the National Flood Program. This version includes new technologies that rate the risk of flooding more accurately and precisely. This technology bases its ratings on information such as where the building is located relevant to flood zones, replacement costs, prior claims, the building’s number of floors, mitigations, and first floor elevation. There is additional information required, including square footage of the building, if the location has multiple buildings, as well as the insured’s contact information. All of these aspects are taken into consideration by FEMA rating system prior to determining the policy premium.

How will this affect my insurance?

This will affect any new flood policies that are effective on and after October 1st, 2021 and will also affect policies that have renewal dates of April 1st, 2022 and later. These policies will be required to use the new flood rating method. 

Flood insurance is important and protects your home and belongings, especially in Florida with the extreme weather conditions. For almost 30 years, flood rates were based on a fixed zoning map, which did not include as many details as the new Risk Rating 2.0 does. Since Risk Rating 2.0 includes numerous flooding variables, FEMA will be able to give the insured more accurate and fair rates. A featured flood variable includes the frequency of flooding, which includes erosion, heavy rainfall, and river overflow. Other variables taken into consideration are the distance to a body of water and the cost to rebuild. Incorporating rebuilding costs eliminates individuals paying a higher premium for a low-valued home and stops higher-valued homeowners from paying a lower premium than needed.

What is Remaining Unchanged?

The restriction on increasing premiums will remain the same, therefore premiums will not exceed an 18% increase annually. FEMA will also allow homeowners to receive a discount of 5% to 45% on their premium, if they participate in the community flood rating program. 

Homeowners will also have the ability to pass along their premium discount when the ownership of the property changes. Since Rating Risk 2.0 does not produce rates based on flood zones, these discounts will be provided to the community that participates. In terms of the policy itself, the coverage requirements remain unchanged and are still based on the structure’s zone,  specifics of the building and when it was built.

Call us for a Quote 

Elementary is focused on helping you increase your savings, raising your deductible, providing you with discounts and applying credit as much as possible. Learn more about Elementary insurance products, or if you’re ready to take the next step, call (813) 212-8505 for a FREE no obligation quote.


Information gathered from: https://www.fema.gov/flood-insurance/risk-rating

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