How Significant Changes to Flood Insurance Will Have An Impact in 2024Since the 1970s, rates have been predominantly based on relatively static measurements, emphasizing a property’s elevation within a zone on a Flood Insurance Rate Map (FIRM). With Risk Rating 2.0, FEMA now has the capability and tools to address rating disparities by incorporating more flood risk variables. These include flood frequency, multiple flood types—river overflow, storm surge, coastal erosion, and heavy rainfall—and distance to a water source along with property characteristics such as elevation and the cost to rebuild. Elevation of buildings and the use of smart vents are now only a contributing factor and not the primary driver of discounts. This is very important when discussing construction loans. Read more
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