Public release of Risk Rating 2.0 rates delayed- Implementation timeline remains the same. On July 30th, FEMA announced that the public release of the new flood insurance premium rates under Risk Rating 2.0 (Equity in Action) will be delayed to at least August 16th.  Rates were originally going to be made available August 1st. This means that while the Write Your Own (WYO) insurance companies have access to the rates and are testing connections to the FEMA rating engine, insurance agents and others do not yet have rates available for quoting and binding insurance policies. This is a developing story, and rates may be further delayed.  The MCC will update you as this develops.  Stay tuned to your source of flood information for more. NOTE: While the release of rates is delayed, the implementation of Risk Rating 2.0, which begins October 1st 2021, is not delayed.  Implementation timelines along with other information can be found here: FEMA Risk Rating 2.0 WebsiteFor the MCC Risk Rating 2.0 page with the most recent downloads and more, go HERE.

When FEMA announced the transformation of the National Flood Insurance Program (NFIP) with updated and modernized rating dubbed Risk Rating 2.0, questions and concerns were raised from various industries such as insurance agents and real estate professionals.  As FEMA begins to release details around Risk Rating 2.0, it’s clear that the NFIP transformation will not just impact insurance rating, it will impact the entire flood industry.  From private flood insurance companies to floodplain managers, each stakeholder will be influenced by Risk Rating 2.0’s implementation. FEMA has branded Risk Rating 2.0 as “Equity in Action” since the coming changes will make the NFIP rates more fair and easier to understand.  Equity in Action replaces the current binary “in versus out” of a high-risk flood zone pricing methodology.  Rather, it uses “graduated” rating, which is a pricing methodology based on factors such as distance to water, types of flood exposure, and other advanced elements.  Equity in Action will also bring more equity to NFIP policyholders by basing rates off of the building’s replacement cost.  The higher the building’s replacement cost, the more expensive the premium, and vice versa.  In April, FEMA issued a press release on Equity in Action and state fact […]