With Risk Rating 2.0, FEMA now has the capability and tools to address rating disparities by incorporating more flood risk variables. Risk Rating 2.0 enables FEMA to set rates that are fairer and ensures rate increases and decreases are both equitable.įEMA is building on years of investment in flood hazard information by incorporating private sector data sets, catastrophe models and evolving actuarial science. Risk Rating 2.0 is not just a minor improvement, but a transformational leap forward. This approach does not incorporate as many flooding variables as Risk Rating 2.0. Since 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). Purchasing flood insurance is the first line of defense against flood damage and a step toward a quicker recovery following a flood. More Content From Clark.FEMA is committed to building a culture of preparedness across the nation. Use this guide to learn more about flood insurance before you start shopping. “They will wash their hands of you and tell you that you are on your own.” Because remember, if you don’t have this and your home floods, your homeowners’ insurance does not cover you,” Clark says. “You can do this and figure out if you should buy the flood insurance. If you do, Clark says the site can be a great way to educate yourself about your property or one you’re considering buying. “But if you are in a flood zone, it can be extremely expensive, although a policy can cover a quarter-million dollars in damage to your home.” Final ThoughtsĪs for Flood Factor, Clark says this free tool is very helpful, but you should read its methodology to make sure you agree with it. “For me, it’s relatively inexpensive at a few hundred dollars a year for $25,000 in coverage,” Clark says. “So even though we’re not required to, we have federal flood insurance.”Ĭlark says the key to buying flood insurance is whether it makes financial sense for you. “Even though we have never experienced flooding, we have a creek that runs through our property, and we worry that it could cause a problem in our basement,” he says. Should You Buy Flood Insurance if You’re Not in a Flood Zone?Ĭlark says he has flood insurance on his home even though he’s not in a federally designated flood zone.
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