For those clients with a FEMA flood policy in place, you will be receiving notification from FEMA that your flood policy will soon be transitioning to their new Risk Rating 2.0: Equity in Action rating methodology platform. The premise behind this new rating methodology is to rate individual locations on their own individual merits, thus, providing individualized rates for clients. It will also streamline the process for agents, as the old rating methodology was developed back in the 1970’s.
Due to the shear number of flood policy types, along with the multiple flood zones, it is impossible for us to say how this new FEMA platform will affect each person’s premium. According to the FAQ section of the Risk Rating 2.0: Equity in Action memo in the link below, some customers premiums could go down, some customers premiums could go up, and some customers premiums could stay the same. However, we will not know until the renewals have been sent to the customers. In addition, since FEMA flood is a federal government program, the rates are set by FEMA and are the same from carrier to carrier, since FEMA underwrites the actual flood policies.
For further information on FEMA’s new RISK RATING 2.0 please click on the link below.
Click here to obtain a copy of FEMA’s Risk Rating 2.0 FAQ’s.
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