Flood Insurance Alert: Need to Know Info on Oct. 1 Changes

WASHINGTON – The Federal Emergency Management Agency (FEMA), which oversees the National Flood Insurance Program (NFIP), is updating its risk rating methodology on Oct. 1.

Many industry groups, including the National Association of Realtors® (NAR), say that the new rates – which will be individualized by home rather than set by flood zone – leverage “industry best practices and cutting-edge technology to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk.”

On Tuesday, Sept. 28, at 10 a.m., Florida Realtors® and 2022 NAR Insurance Committee Vice Chair Cyndee Haydon will host a Zoom webinar and walk members through the changes and what they mean for policyholders, buyers and real estate professionals in Florida.

The risk rating changes will phase in over the next seven months, beginning Oct. 1, when new NFIP policies will be subject to the new rating methodology. (Note: Homebuyers may be able to secure private flood coverage or, alternately, assume the seller’s NFIP policy providing they’re willing to do so.) Renewing policyholders will also be able to take advantage of immediate decreases in their premiums.

All remaining policies that renew on or after April 1, 2022, will be subject to the new rating methodology.