2-Minute Read: Changes Coming to NFIP Flood Rates + 2021 Hurricane Season Projections

In case you missed it, two major news items are making 'waves':

1. Changes to NFIP Flood Insurance Pricing

Starting October 1, the National Flood Insurance Program (NFIP) risk rating is changing to a new methodology called Risk Rating 2.0.

The government is seeking to modernize NFIP to match private flood insurance pricing models so that we have one, consistent manner of pricing flood insurance from coast to coast. We wrote this article surveying NFIP flood insurance compared to the emerging private insurance market.

Key Dates:

Phase I
Beginning October 1, all new policies will be subject to the new rating methodology. Also beginning the same date, existing policyholders eligible for renewal will be able to take advantage of an immediate decrease in their premiums (to the extent applicable).

Phase II
All remaining policies renewing on or after April 1, 2022, will be subject to the new rating methodology.

State-by-State NFIP Cost Impact:

FEMA has posted individual PDF analysis of what Risk Rating 2.0 will mean for each state. Please click here to research your state.

2. 2021 Hurricane Season Projections

Two reputable sources have made their predictions for the upcoming 2021 Hurricane Season, and both anticipate an active summer for the Atlantic States and the Gulf Coast.

• AccuWeather Issues 2021 Atlantic Hurricane Season Forecast
• Colorado State University: Forecast for 2021 Hurricane Season: Another Busy Year

If you are interested in learning more, access our free eBook: Everything You Always Wanted To Know About Flood Insurance* (*But Were Afraid To Ask)

Or,

Join our weekly, free REALTOR® training on Tuesdays at noon EDT. Sign Up Here. Note: Tuesday, April 27 Training in Spanish. Sign Up Here (Spanish)

CartoFront is a technology services company that is simplifying flood insurance for REALTORS®, their clients, and insurance agents.