All new policies effective on or after Oct. 1 must be issued under Risk Rating 2.0, FEMA's new pricing methodology for the National Flood Insurance Program (NFIP).
Risk Rating 2.0, FEMA's new pricing methodology for the National Flood Insurance Program (NFIP), is set to go into effect Friday, Oct. 1.
All new policies effective on or after Oct. 1 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.
FEMA will continue to update the NFIP Services page to provide access to the latest documents for Risk Rating 2.0.
Risk Rating 2.0 is a massive change to the NFIP and the Big “I" is optimistic that it will have a positive impact on the NFIP in the long term. Naturally, any change of this magnitude will have some implementation issues. The Big “I" and our carrier partners will continue to work closely with FEMA to resolve any issues as quickly as possible and make any necessary refinements to ensure the intended objectives of Risk Rating 2.0 are achieved.
As FEMA continues to provide more information regarding Risk Rating 2.0, the Big “I" will provide members with updates in the weekly News & Views e-newsletter.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.