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The Federal Emergency Management Agency refers to its new flood insurance pricing structure, known as Risk Rating 2.0, as "Equity in Action." The agency says that the revised rates, which went into effect Oct. 1, 2021, "leverage industry best practices and cutting-edge technology to enable FEMA to deliver rates that are actuarially sound, equitable, easier to understand and better reflect a property's flood risk."
The new pricing structure is a departure from the U.S. government's longtime practice of using flood-zone maps to determine risk and instead takes into consideration several property-specific factors including elevation, the type of foundation and the structure's replacement cost.
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Elana Ashanti Jefferson
Elana Ashanti Jefferson serves as ALM's PropertyCasualty360 Group Chief Editor. She is a veteran journalist and communications professional. Reach her by sending an e-mail to [email protected].
