The Risk of Risk 2.0 Rating

FEMA finally announced the implementation of Risk Rating 2.0: Equity in Action, to revamp the current NFIP Flood Insurance Rating. This is heavily opposed by most homeowners and even congressional representatives as it would ultimately result in high premium hikes to a large percentage of property owners and some officials even predict it could even rattle the real estate market with a new mortgage crisis. 

 This means you need to act fast and have your property reviewed for potential savings. Any opportunities to lower the flood insurance premiums would result in thousands of dollars down the road. Even with Risk 2.0 Rating, there would be a cap on how much the premiums would increase yearly set in place to protect your assets in flood.

 Example: 

In one recent case study, where Condo owners saw flood premiums for their 94 unit Association lower from $78,000 down to $16,000, the impact of our consultation is very large. Let's assume the Risk Rating 2.0 premium starts at $50,000, which is just about the average of their older and new pricing, the long term savings are impressive:

As you can see, assuming a 7% yearly growth cap for all premiums, it would take approximately 18 years for the NFE Improved rate to get over the $50,000 mark yearly, which would translate into over 1 million dollars in cumulative savings.

This is a very typical scenario of what is expected to happen and the long-term value of our service. It's always free to check, so feel free to get in touch with our team National Flood Experts.