The guide gives agents easy access to Risk Rating 2.0 information when completing a National Flood Insurance Program (NFIP) application.
As reported in the News & Views e-newsletter throughout the year, Risk Rating 2.0 is FEMA's new pricing methodology for the NFIP which is scheduled to be implemented on Oct. 1.
All new policies effective on or after Oct. 1, 2021, must be issued under Risk Rating 2.0. Existing policies renewing with effective dates between Oct. 1, 2021, and March 31, 2022, can renew under the legacy rating plan or renew their policy under Risk Rating 2.0. All existing policies with renewal dates on or after April 1, 2022, will be renewed under Risk Rating 2.0.
With implementation nearing, FEMA recently issued the “Simple Guide for Single-Family Homes." “The document gives agents easy access to Risk Rating 2.0 information needed when completing an NFIP flood insurance application, ensuring the process is easy and accurate. It was designed to help make the flood sale complete and as exact as possible," according to FEMA.
The guide includes rating variable portions of the NFIP application, with high-level information and references to locate each section in the NFIP Flood Insurance Manual (FIM). Once the final version of the FIM is posted on fema.gov, FEMA will update those FIM references with hyperlinks that take you directly to the appropriate sections.
For additional questions, FEMA urges agents to visit the Risk Rating 2.0: Equity in Action website.
Additionally, FEMA recently announced additional September dates for agent training webinars. Important information about the webinars such as dates times and how to register is listed in this FEMA bulletin. The bulletin also includes important information about continuing education (CE) credits, including which states have approved the webinars for CE credits. In addition to the states which have already approved the webinars for CE credits, there are still some pending approvals for CE credits that are outlined within the bulletin.
The Risk Rating 2.0 – Equity in Action webinars are free to attend, but spaces are limited to 1,500 attendees per event. Register early if you are interested. The webinar will provide agents with the latest information on how and when Risk Rating 2.0 will be implemented. It will also discuss the following topics:
- What is Risk Rating 2.0 – Equity in Action?
- What led to this NFIP transformation?
- The NFIP today: What is changing?
- What is not changing?
- How will current policies transition?
The Big “I" believes that Risk Rating 2.0, if properly implemented, has the potential to improve the NFIP experience for agents and consumers, but emphasizes that the rollout of the program will be critical in determining the success of the effort.
As FEMA continues to provide more information regarding Risk Rating 2.0, the Big “I" will continue to provide members with updates in the weekly News & Views e-newsletter.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.