Recognizing that purchasing flood insurance can be confusing, FEMA, through the National Flood Insurance Program (NFIP) is redesigning its risk rating system to improve the policyholder experience. “Risk Rating 2.0” aims to leverage best industry practices in hopes of better reflecting a property’s unique flood risk. The current rating methodology has not changed since the 1970s and is heavily dependent on the 1-percent-annual-chance-event, whereas Risk Rating 2.0 will incorporate a broader range of flood frequencies. FEMA will pair new technology with the NFIP’s mapping data to establish a new risk-informed rating plan. FEMA is hopeful that these models, in combination with the ability to leverage the mapping data will provide a better understanding of risk. FEMA is also building a new rating engine to help agents easily price and sell policies, and help policyholders to better understand their property’s flood risk. New rates for all single-family homes will go into effect nationwide on October 1, 2020.
Ken R. DeMerchant, the County Commissioner for Fort Bend County – Precinct 4, has written a letter to Senators Cornyn and Cruz, and Congressmen Green and Olson regarding his concerns about the potential negative impact Risk Rating 2.0 could have on residents’ insurance policies. Among other issues, Commissioner DeMerchant seeks to make sure that Risk Rating 2.0 does not make flood insurance unaffordable or punish residents that currently carry flood insurance. Moreover, Commissioner DeMerchant voices his concern about whether the program would acknowledge local efforts to mitigate flood risks, as the Fort Bend County levee system has provided significant protection. Commissioner DeMerchant has asked that residents of Precinct 4 support his letter and work to stop any negative impacts from Risk Rating 2.0 to help ensure that any new NFIP authorizations take into consideration Fort Bend County’s successful efforts to build and maintain flood control infrastructure. You can view Commissioner DeMerchant’s letter and vote your agreement with his letter at the following website: https://www.fortbendcountytx.gov/government/governing-body/commissioners-court/commissioner-precinct-4/fema-risk-rating-2-0. It is very important to show your support for Commissioner DeMerchant in this matter as Risk Rating 2.0 could adversely affect residents within the precinct and District.
Learn more about Risk Rating 2.0 here: