Flood Risk is Mortgage Risk

Studies show floods increase both mortgage delinquency and foreclosures. And National Flood Insurance Program (NFIP) premiums are now actuarially-based, so they reflect flood risk liability.

Read Your Risk, LLC calculates flood insurance premiums in accordance with FEMA’s Risk Rating 2.0 pricing strategy and the National Flood Insurance Program (NFIP). We provide GIS data layers of premium estimates and geographic rates that summarize the numerous geographic factors by flood risk peril.

While FEMA has made its Risk Rating 2.0 (RR2.0) methodology publicly available, they do not fully explain all details of their approach or source data, and even use some proprietary data. Read Your Risk has reverse-engineered the methodology and developed code to compute NFIP premium estimates and generate national GIS coverages.

Read Your Risk has worked closely with researchers at University of Wisconsin and LSU to ensure all calculations are correct and fully consistent with FEMA methodology.

Because the RR2.0 pricing strategy is actuarially sound, NFIP premiums represent homeowners’ flood risk liability – i.e., the annual cost of carrying flood insurance, OR the annual expected cost of recovering from a flood without insurance.

a National Data Coverage of Annual Flood Risk Liability

Please contact us to be added to our mailing list or to set up an appointment to walk through the data and discuss how you might be able to integrate RYR data into your risk management practice.