FEMA Defers Implementation of New Flood Insurance Risk Rating System

Filed in Codes and Regulations, Environmental by on November 7, 2019 2 Comments
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waterThe Federal Emergency Management Agency (FEMA) announced today it was deferring implementation of its new flood insurance risk rating program by one year until Oct. 1, 2021.

As NAHBNow has previously reported, FEMA, which oversees and implements the National Flood Insurance Program (NFIP), has initiated a long-term effort to transform the program to make it more consumer friendly and better reflect the actual risks properties face.

FEMA said today that it is deferring the implementation of the initiative, commonly referred to as Risk Rating 2.0. The agency had previously announced that new rates for all single-family homes would go into effect nationwide on Oct. 1, 2020.

According to the FEMA notice, additional time is required to “conduct a comprehensive analysis of the proposed rating structure so as to protect policyholders and minimize any unintentional negative effects of the transition.”

As a result, FEMA decided to defer the implementation of Risk Rating 2.0 until Oct. 1, 2021.

It is worth noting that this extension will now allow for all NFIP policies – including, single-family homes, multi-unit and commercial properties – to change over to the new rating system at one time. The originally proposed phased approach would have only resulted in new rates for all single-family homes to go into effect nationwide on Oct. 1, 2020.

NAHB will continue working with FEMA staff to develop industry-specific briefings and resources throughout the process. Please continue to look to NAHBNow for further updates as they occur.

For more information — including FAQs developed by FEMA  — visit NFIP Transformation or contact Tamra Spielvogel at NAHB at 800-368-5242 x8327.

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Comments (2)

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  1. Al Andrews says:

    I’m currently building a single family home in a floodplain area, 206 W. Cherokee Trail, Bay Veiw Ohio,note I have not dug out for the footer yet, I am waiting for surveyors to send into FEMA to get removed from the floodplain. My question is would the BFE be raised or lowered or stay the same that is now set at 577.2 ?

    • NAHB Now says:

      While we can’t speak to the specifics of any single map/BFE, the process that is used for map updates is not intended to be directly impacted by the rate transformation process.

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