Description: FEMA has branded Risk Rating 2.0 as “Equity in Action” since the coming changes will make the NFIP rates fairer and easier to understand. FEMA’s new approach replaces the current binary “in versus out” of a high-risk flood zone pricing methodology. Instead it uses “graduated” rating, which is a pricing methodology based on rating factors such as distance to water, types of flood exposure, and the cost to rebuild.
In this presentation, we will look at the impacts this new “Equity in Action” approach will have on the flood insurance industry including:
- how mitigation measures such as elevating buildings will be communicated to reduce premiums;
- how to determine if insurance is required or not; and
- the rating factors that impact insurance premiums.