FEMA’s New Flood Rates for Florida
And What they Mean to You
Last April, FEMA announced their new flood rating system, Risk Rating 2.0, would go into effect on October 1, 2021. This new program changes the way flood insurance rates are determined for homeowners living on or near the waterfront. Because Florida is only second only to Alaska in miles of coastline, a lot of homeowners are now going to see rate hikes.
According to FEMA.gov, “With Risk Rating 2.0, individuals will no longer pay more than their share in flood insurance premiums based on the value of their homes.”
Based on information put out by the agency, FEMA reports that 20% of homeowners will see immediate decreases in their flood insurance, 68% will see increases of up to $120 per year, 8% will see $120-$140 per year, and 4% will see $240 per year rate hikes.
While the previous system enacted flood rate increases yearly, FEMA reports that Risk Rating 2.0 will do the same, until the “full risk rate is realized.”
What to Do if You Live Close to the Water
FEMA recommends homeowners in high-risk areas find ways to mitigate flood risk by working with their local community and state to both prevent flooding issues within their region.
A program called the Community Rating System (CRS) is also an option for communities to earn rate discounts through the National Flood Insurance Program.
Grants for pre and post disaster mitigation are also an option. Whether you’re a new or established policyholder with Galezano Insurance, we can help you find out if this is a good idea to look into.
Buying a Home or Refinancing? Why it’s Crucial to Get an Experienced Lender
With Risk Rating 2.0, it’s more important than ever to make sure you’re working with an experienced lender when buying or refinancing a home. Lenders may unknowingly give permissions for a non-FEMA policy in areas that require FEMA coverage. This can cause major delays in the lending process and cancellation of insurance policies. Even VA loans might require a FEMA policy. An experienced and qualified lender will either know whether you’re in a high-risk area, or know someone who can find out if you are. If you need help finding a local lender who understands the new FEMA Risk Rating 2.0 requirements, we work in partnership with trusted professionals who can answer your questions and help make the buying and refinancing process smooth and stress-free.
At Galezano insurance, we don’t work for the insurance companies; we work for you. As independent agents, we shop a wide variety of carriers to find the best quality coverage for you.
Experience counts, and at Galezano Insurance, we’ve got decades of Florida insurance experience, and we put it to work to help you.
Worried about FEMA’s Risk Rating 2.0 changes?
Call us today at (239)202-0233 to find out how you can get the best coverage for your Florida home.