The National Flood Insurance Program (NFIP) provides coverage to property owners, renters, and businesses to mitigate the socio-economic impact of floods. Many apartment firms secure some or all of their required flood insurance coverage through the NFIP so the long-term financial viability of the program is of paramount importance to the apartment industry. FEMA is updating the NFIP risk rating methodology through the implementation of a new pricing methodology called Risk Rating 2.0 – Equity in Action, set to take effect on October 1, 2021, for any new NFIP policy issued and for those renewing on or after April 1, 2022.
- How Risk Rating 2.0 enables FEMA to set rates that are fairer and ensures rate increases and decreases are both equitable.
- What the rating methodology will mean to multifamily and commercial policyholders and the industry overall.
- What’s not changing under Risk Rating 2.0