93 93
INVESTMENT GOVERNMENT PROPERTY PRESERVATION
FLORIDA, TEXAS,
MOST LIKELY
TO SEE FLOOD
INSURANCE HIKES
It seems that the Federal Emergency
Management Agency Risk Rating 2.0, which
is changing up where and how much people are
being charged for flood insurance, is impacting
Texas and Florida the hardest.
FEMA's Risk Rating 2.0 raises flood
insurance premiums on those who depend
on NFIP to protect their homes from natural
disasters through government-backed, but
privately-administered flood insurance.
FEMA allowed Risk Rating 2.0 to go into full
effect on April 1, 2022.
Nearly 90% of FEMA policyholders in
Texas, Florida and Mississippi are experiencing
flood insurance price increases—a higher
portion than any other state and above the
national average of 81% that FEMA expected
to see increases.
is number comes from Redfin, who
predicts that three million single-family homes
will see their flood insurance premiums rise
due to how the agency overhauled its risk
prediction models.
New policyholders have been subject to the
overhauled pricing methodology since October
1, 2021. Policyholders experiencing premium
decreases also began seeing changes take effect
in October 2021.
is new risk model comes at a time when
the populations of Florida and Texas have been
swelling, increasing the cost burden of more
homeowners, which affects affordability.
"Nationwide, over three-quarters (81%)
of single-family home policyholders are set
to see their flood-insurance premiums rise,
starting April 1," Redfin said in a release. "e
remaining 19% are seeing decreases. Of the
policyholders experiencing increases, most
(88%) are seeing annual premiums rise by up
to $120, while 9% are facing increases of $120
to $240 and 4% are seeing jumps of $240 or
more."
Journal
