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In 2019, FEMA said instead, a “change” the agency calls it, which will price flood insurance based on the specific risks each property faces.Risk Rating 2.0.then a lateness By the Trump administration, the new system will go into effect next month for people who buy flood insurance. Rates for existing customers will increase from next April.
The change was applauded bag the advocacy groupsincluding climate resilience experts, environmentalists, the insurance industry, and the budget watch group Taxpayers for Common Sense.
“With a rapidly increasing threat of natural disasters, Risk Rating 2.0 is a much-needed and timely change,” said Laura Lightbody, director of the flood prepared communities project at Pew Charitable Trusts, which pushes governments to better respond to climate threats. . The fact that some policyholders will face higher costs is “a reflection of our new, wet reality,” he said.
Surprising costs
But the financial implications of this new reality will be staggering for some communities.
The flood program insures 3.4 million single-family homes nationwide. For 2.4 million of these houses, rates will not increase by more than $120 in the first year. Data published by FEMA — similar to typical annual increases in the current system. An additional 627,000 homes will see their costs fall.
But 331,000 single-family homes nationwide will face a significant increase in costs. More than 230,000 households will see an increase of $120 to $240 in the first year; an additional 74,000 households will see costs increase by $240 to $360. Costs will range from $360 to $1,200 for approximately 25,000 single-family homes.
Nearly half of these 25,000 households are in Florida, most in St. Petersburg along a string of high-risk barrier islands stretching south to Fort Myers.
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