Should flood insurance costs affect home prices?
Here’s a Home Discount Calculator that helps you determine the effect a higher flood insurance premium should affect a home price, all else being equal.
Projected Increase in National Flood Insurance Program (NFIP) Premiums under Risk Rating 2.0
In April 2023, FEMA released statistics on how premiums are changing under Risk Rating 2.0, relative to existing premiums. Premiums were aggregated at the zip code level and represent policies for single family homes only. The interactive map below shows the percent increases in three categories: 0%-50%, 50%-150%, and > 150%. Zip codes with less…
What’s not transparent about Risk Rating 2.0?
David Maurstad FEMA’s Assistant Administrator of the Federal Insurance Directorate and the senior executive of the National Flood Insurance Program (NFIP) recently testified before the House Financial Services Subcommittee on Housing and Insurance. Rep. Bill Posey (R-Florida 8th District, Titusville, Melbourne, Vero Beach) asked a pointed question about the lack of transparency of Risk Rating…
Flood Risk Disclosure
What is flood risk disclosure? Flood risk disclosure is the provision of flood risk information during property transfer. Legal requirements vary from state to state and there are three common types of flood-related disclosure (Hino and Burke, 2020): How is flood risk disclosure typically performed? Flood risk disclosure is typically last-minute and minimal. According to…
What’s the difference between Risk Rating 2.0 Premium Estimate Maps, traditional FEMA flood insurance rate maps (FIRMs), and other flood risk maps?
Risk Rating 2.0 Premium Estimate Maps The geographic flood insurance rate maps presented on this website are based on the NFIP Risk Rating 2.0 premium calculation methodology. This is the methodology now used by FEMA for all NFIP insurance policies issued as of April 2022. Risk Rating 2.0 is composed of premium base rates and…
Why I created Read Your Risk
As a water resources engineering professional with an expertise in flood risk management, I saw the great potential of FEMA’s Risk Rating 2.0 to help reduce tragic flood impacts. By using actuarial methods, it aligns flood insurance cost with actual risk. This provides a direct financial incentive to avoid flood prone areas which should, over…