Flood Insurance Basics
Flood Insurance Basics
The National Flood Insurance Program (NFIP) was created in 1968 by the United States Congress. The NFIP is managed by FEMA and is able to offer up to $250,000 of building coverage and $100,000 of contents coverage for single-family homes. We represent many companies who offer public flood insurance through the NFIP. Call us today for a free quote surveying both the public and private option.
As of April 2022, FEMA has adopted a new premium rating system titled “Risk Rating 2.0: Equity in Action.” This rating change has caused premium increases for many homeowners, leading them to explore the private flood insurance market. We represent over 20 private flood market to ensure you get the best price and coverage!
3 Things You Need to Know About FEMA Risk Rating 2.0: Equity in Action
For the first time since its inception in 1968, FEMA has updated its rating system for the National Flood Insurance Program (NFIP). The new rating system, officially titled “Risk Rating 2.0 Equity in Action” was adopted in April of 2022, and it has sparked much congressional and customer controversy. According to FEMA, over 70 percent of all policyholders have experienced or will experience an increase in total premium under the new rating methodology. However, it’s not all bad news when it comes to Risk Rating 2.0.
See what’s covered under a flood insurance policy
What is a flood?
The NFIP and FEMA define a flood as
“A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:
- Overflow of inland or tidal waters;
- Unusual and rapid accumulation or runoff of surface waters from any source;
- Mudflow; or
- Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.”
