DID YOUR FLOOD INSURANCE GO UP?

 Flood insurance is not mandatory for home owners outside of a high-risk area, anyone can be financially vulnerable to floods. People outside of high-risk areas file more than 20 percent of NFIP claims  and receive one-third of disaster assistance for flooding. Residential and commercial property owners  who are not located in high-risk areas should ask their agents if they are eligible for the Preferred Risk Policy, which provides affordable flood insurance protection, starting as low as $137 a year in 2016.  You should discuss your exposure with your agent or other financial professional. 

 A common misconception is that homeowners’ policies cover flood damage. In fact, most homeowner. In fact, most homeowner and business multi—peril policies do not cover flooding. In addition, federal disaster assistance will not always pay for flood damage. The President must declare a major disaster before most forms of federal disaster assistance can be offered and most forms of disaster assistance are loans that must be repaid with interest. In 2016, the average flood policy costs about $700 a year and the average total paid claim has been more than $31,000.  

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

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

With Risk Rating 2.0, FEMA now has the capability and tools to address rating disparities by incorporating more flood risk variables. These include flood frequency, multiple flood types—river overflow, storm surge, coastal erosion and heavy rainfall—and distance to a water source along with property characteristics such as elevation and the cost to rebuild.