MAJOR IMPROVEMENTS COMING TO THE NATIONAL FLOOD INSURANCE PROGRAM » Mortgage Masters Group
25338
post-template-default,single,single-post,postid-25338,single-format-standard,bridge-core-1.0.5,qode-page-transition-enabled,ajax_fade,page_not_loaded,,qode-child-theme-ver-1.0.0,qode-theme-ver-28.5,qode-theme-bridge,wpb-js-composer js-comp-ver-6.7.0,vc_responsive

MAJOR IMPROVEMENTS COMING TO THE NATIONAL FLOOD INSURANCE PROGRAM

National flood insurance progfram logo - MAJOR IMPROVEMENTS COMING TO THE NATIONAL FLOOD INSURANCE PROGRAM

On Oct. 1, 2021 FEMA will begin implementing a new pricing methodology called Risk Rating 2.0: Equity in Action. These changes will apply to new policies. Most existing policies will not be affected until after April 1, 2022.

 

Where Can I Find More Information About FEMA’s Risk Rating 2.0: Equity in Action?

As FEMA implements the new pricing system, some owners and buyers may have questions about flood insurance rate changes. Real estate agents and brokers are an information source, not flood or insurance experts. You can provide the facts that every home in America has some flood risk, and a flood insurance rate quote from a licensed insurance professional can help your clients make better informed decisions. You can also be ready with contact information for a few NFIP and private market insurance agents, licensed surveyors/engineers, and other flood risk professionals (e.g., your local government floodplain manager) who can offer risk assessment and mitigation resources and answer property-specific questions.

NAR has developed the following comprehensive packet of educational information for NAR members to talk with customers about Risk Rating 2.0:

FEMA-NAR Flyer for Homeowners
NAR Frequently Asked Questions (FAQs)
NAR Member Legal Guidance
NAR-FEMA Toolkit: Disaster Preparedness
Video: NAR-FEMA Townhall
Video: Flood Insurance & Disclosures: What You Need to Know Now

 

To learn more about Risk Rating 2.0:  Equity in Action, FEMA has a dedicated webpage with comprehensive consumer resources(link is external).

      • What’s Changing? Since the 1970s, National Flood Insurance Program rates have relied predominantly on a property’s location with a zone on a relatively static Flood Insurance Rate Map. With the new methodology, FEMA now has access to modern insurance technologies, catastrophic models and data sets so it no longer requires zones or elevation certificates. The new methodology rates each individual home according to property specific rating factors, such as its unique elevation, distance to water and cost to rebuild.

      • Why? Currently, policyholders with lower-value homes are paying more than they should and policyholders with higher value homes are paying less than they should. These lower-value homes have some of the highest rates in the program. Under the new methodology, they will see an immediate decrease in insurance costs because it accounts for more risk factors and rates each home individually.

      • What Does this Mean for my NFIP Rate – Will it Go Up or Down? Because each home is rated individually under the new system, only a licensed insurance agent can tell you that. Please contact your agent today to prepare a quote for you or view FEMA’s Risk Rating 2.0 at www.fema.gov/flood-insurance/risk-rating.

      • What’s Not Changing Under Risk Rating 2.0? Rate increases will not exceed 18% per year; Grandfathered rates including for newly mapped and pre-FIRM subsidized homes will continue; Policyholders will still be able to transfer discounts to a new owner by assigning their flood insurance policy; and Floodplain Mgmt. requirements will continue to be enforced by communities and lenders as usual.

 

Source: FEMA & National Association of Realtors®



CALL NOW 772-340-4003

Port St Lucie Mortgages, VA Home Loans & Mortgage Refinancing throughout the Treasure Coast and all of Florida

Port Saint Lucie • Fort Pierce • Sebastian • Stuart • Vero Beach • Sewall's Point • Palm City • Jensen Beach • Hobe Sound • Lakewood Park • Port Salerno • Fort Pierce South • White City • North River Shores • & serving all the great state of Florida

Palm Beach Mortgages, VA Home Loans & Mortgage Refinancing throughout Palm Beach County and all of Florida

West Palm Beach • Boca Raton • Boynton Beach • Delray Beach • Wellington • Jupiter • Palm Beach Gardens • Greenacres • Lake Worth • Royal Palm Beach • Riviera Beach • Palm Springs • Belle Glade • North Palm Beach • Lantana • Palm Beach • Lake Park • Pahokee • Tequesta • South Bay • & serving all the great state of Florida

Broward Mortgages, VA Home Loans & Mortgage Refinancing throughout Broward County and all of Florida

Fort Lauderdale • Pembroke Pines • Hollywood • Miramar • Coral Springs • Pompano Beach • Davie • Plantation • Sunrise • Deerfield Beach • Lauderhill • Weston • Tamarac • Margate • Coconut Creek • Oakland Park • North Lauderdale • Hallandale Beach • Lauderdale Lakes • Dania Beach • & serving all the great state of Florida

Miami Mortgages, VA Home Loans & Mortgage Refinancing throughout Miami-Dade County and all of Florida

Miami • Hialeah • Miami Gardens • Miami Beach • Homestead • North Miami • Coral Gables • Doral • North Miami Beach • Cutler Bay • Aventura • Miami Lakes • Palmetto Bay • Hialeah Gardens • Sunny Isles Beach • Pinecrest • Opa-locka • Miami Springs • Sweetwater • Key Biscayne • & serving all the great state of Florida

Florida Mortgages, VA Home Loans & Mortgage Refinancing throughout all the great state of Florida

Jacksonville • Tampa • St. Petersburg • Orlando • Tallahassee • Cape Coral • Gainesville • Clearwater • Lakeland • Deltona • Largo • Melbourne • Fort Myers • Daytona Beach • Kissimmee • North Port • Ocala • Port Orange • Sanford • Pensacola • & serving all the great state of Florida