Not like the fashionable ranking methodology utilized by non-public market flood insurance coverage corporations, FEMA’s ranking system for pricing insurance policies previous to October 1, 2021, used older threat ranking strategies centered on 100-year flood maps coupled with constructing elevation. By implementing Danger Ranking 2.0, the NFIP has enriched its information to incorporate third-party sources, added new ranking standards, and leveraged expertise to fee insurance policies primarily based on particular person property dangers. In brief, due to Danger Ranking 2.0, NFIP charges will go up for some property house owners, however down for others. This variation goals to cost flood threat extra precisely primarily based on trendy ranking methodology and a greater understanding of per-property loss threat.
