Flood Insurance Policy Changes

Since the 1970’s Flood insurance rates have been calculated based on criteria that do not accurately account for flood risk. Rates have previously been based on a Flood Insurance Rate Map (FIRM).

These maps were developed in 1968 when the National Flood Insurance Program (NFIP) was enacted. Prior to the development of the NFIP, flood insurance was rarely offered by insurance companies as floods were deemed an “uninsurable risk” (Metz, Danise).

This outdated method has caused years of disparity among flood claim costs and is finally being resolved through the implementation of Risk Rating 2.0.

Risk Rating 2.0

Through Risk Rating 2.0, FEMA will implement more flood risk variables so that they can ensure that flood policy rates accurately reflect the risk. FEMA’s Risk Rating 2.0 is designed to evaluate and accurately assess each property’s unique flood risk.

This new rating system will ensure a fair and equitable rate for each property as it will rely on “private sector data sets, catastrophe models and evolving actuarial science”, rather than the static and limited measurements included in Flood Insurance Rate Maps (FEMA).

Specific variables that will be considered in the new rating system include, but are not limited to:

  • Flood frequency
  • Flood types:
    • River overflow
    • Storm surge
    • Coastal erosion
    • Heavy rainfall
  • Distance to water sources
  • Property characteristics including elevation and rebuilding costs

Risk Rating 2.0 will allow for a more individualized assessment of flood risk so that each policyholder is paying a fair and accurate price.

Flood Insurance in South Florida

At Burke, Bogart, and Brownell we pride ourselves on providing first rate customer service and we are here to thoroughly address any of your questions or concerns.

For 48 years, we have built our agency to be client focused. Your needs come first, and we believe in doing the right thing, always.

If you have any questions regarding flood insurance in South Florida or Risk Rating 2.0 and how it will affect your policy, feel free to reach out to us. Your insurance agent here at Burke, Bogart, and Brownell is always happy to assist you and answer any questions. Call us at 561-392-8888.

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