| Flood Insurance: FEMA Risk Rating 2.0 Whether or not you have flood insurance, you need to know about FEMA Risk Rating 2.0 which went live on October 1, 2021. Risk Rating 2.0 uses an individualized risk assessment process versus the prior methodology which was based on flood map designations. All new policies will be priced at 100% of the new rates. Existing policies with increases will adjust over time to the new higher rate subject to an 18% pa cap, all of which should be detailed on your new policy declarations page. The new rate structure has a maximum premium of $12,500. Each situation is different but the new methodology will likely increase or decrease your cost of FEMA NFIP coverage now and going forward. For example, in my admittedly unusual case, I canceled my policy in 2015 when my premium exceeded $10k. I received a quote today for under $2k for the same coverage ($250,000) due to Risk Rating 2.0. Ironically, a private flood insurance quote for my property increased from $3600 to $4100 due to Risk Rating 2.0 Whatever your situation, it’s worth familiarizing yourself with the changes to the flood insurance market. The following resources were provided by Tyrell Harrison, a Coastal Insurance Specialist with Peter P. Briggs Insurance Agency. · https://www.fema.gov/flood-insurance/risk-rating· https://www.valuepenguin.com/new-risk-rating-flood-insurance-rate-increases· https://agents.floodsmart.gov/servicing/map-change-keep-clients-up-to-date/increasing-risk· https://bates-hewett.com/2021/04/fema-unveils-changes-to-the-national-flood-insurance-program/When you’re ready, I recommend contacting your agent. If you don’t have an agent or cannot reach them, feel free to contact Tyrell, he has been very helpful to me. FYI, all agents should quote the same rate for FEMA NFIP coverage for your property I believe. Tyrell J. Harrison Coastal Insurance Specialist Peter P. Briggs Insurance Agency, Inc. tharrison@peterbriggsins.com Phone: (508) 758-6929 |
| OFIA (Office of Flood Insurance Advocate)The OFIA was created in 2015 within FEMA as a resource for the public regarding flood insurance (both NFIP and private flood policies).https://www.fema.gov/flood-insurance/advocate For those who recall the difficulties that PI policyholders encountered in 2008 and 2013 to file and collect on their flood insurance policies, the OFIA is an invaluable resource to ensure that you maximize flood insurance protection while complying with local authorities when a home is condemned and must be taken down. The single most important piece of advice is to initiate a claim as early as possible so an adjuster can inspect damage well in advance of a home being knocked down by the ocean and especially before razing it to comply with an order by local public safety authorities because it represents a hazard. I am continuing to research this matter and will share additional information when I have it. |