FEMA and the NFIP are working on changes to the federal flood insurance program that will launch in two phases, new business on October 1, 2021 and renewal business on April 1, 2022. The initiative is called Risk Rating 2.0 and will significantly change the rating structure of NFIP policies. The changes will “provide actuarially sound rates that are equitable and easy to understand” according to the April 1st press release.

Changes to the NFIP include the consideration of flood risk variables such as flood type, flood frequency, elevation, cost to rebuild and elevation. Elevation certificates will be accepted but no longer required to rate and the foundation type options have been consolidated. Flood zones will also not be used for rating in the new format. 

You can learn more about the impacts of the changes to policies in individual states at the Risk Rating 2.0 State Profiles page.

There are also some features of the NFIP that are not changing. Existing policies will not increase more than 18% per year and Flood Insurance Rate Maps will still be used, but only for mandatory purchase and Floodplain Management.

Pre-FRIM subsidized premium discounts and policy assignments will remain in the program, as will the CRS Rating System.

For additional information on Risk Rating 2.0, please visit FEMA’s website.
 
_{This information is for general purposes only and is not intended to provide individualized legal or regulatory advice. It is not intended to be a substitute for any FEMA publications.}