2021 Flood Insurance Update- FEMA Risk Rating 2.0: Equity in Action

7/8/2021 (Permalink)

SERVPRO of Greater Covington and Mandeville is a leader in flood damage restoration.

Have you heard about the NFIP's new flood insurance risk rating change? For the past few decades, flood insurance rates were mostly determined by a property’s elevation within a zone on the Flood Insurance Rate Map (FIRM). Utilizing decades of flood data and cutting-edge technology, FEMA Risk Rating 2.0 will now incorporate numerous factors to provide more equitable rates that better reflect a property’s flood risk. The new rating methodology will take into account a wide variety of variables like flood frequency, type of flooding, distance to water, and cost to rebuild.

FEMA’s Risk Rating 2.0 will be implemented in two phases.

Phase 1

New policies beginning on October 1, 2021, will be subject to the new rating methodology. Also, beginning October 2, existing policyholders eligible for renewal will be able to take advantage of the immediate decrease in their premiums.

Phase 2

All remaining policies renewing on or after April 1, 2022, will be subject to the new rating methodology.

According to FEMA, “under the new pricing system, 96% of current policyholders will see either an immediate decrease or an increase of $20 or less per month increase in their premiums”.

Contact your local insurance agent now to learn more about Risk Rating 2.0: Equity in Action and to purchase flood insurance. Remember, every property in St. Tammany Parish is technically located in a flood zone, every zone is simply either low risk, moderate risk, or high-risk area.

SERVPRO of Greater Covington and Mandeville specializes in flood damage cleanup. If your home or business has been affected by flooding or storm damage, contact our office by dialing 985-871-5375. We are available 24/7/365 for emergency services.