In contrast to the trendy ranking methodology utilized by non-public market flood insurance coverage corporations, FEMA’s ranking system for pricing insurance policies previous to October 1, 2021, used older danger ranking strategies targeted on 100-year flood maps coupled with constructing elevation. By implementing Risk Rating 2.0, the NFIP has enriched its information to incorporate third-party sources, added new ranking standards, and leveraged know-how to price insurance policies based mostly on particular person property dangers. Briefly, due to Danger Ranking 2.0, NFIP charges will go up for some property house owners, however down for others. This modification goals to cost flood danger extra precisely based mostly on fashionable ranking methodology and a greater understanding of per-property loss danger.
