Risk Rating 2.0 may trigger skyrocketing flood insurance rates

Data from First Street Foundation reveals large increases in rates may be necessary in some risk-prone areas. (Photo: iStock)

New data about the growing risks of climate change to residential real estate suggests that the National Flood Insurance Program (NFIP) may have to raise its rates. 

As first reported by the New York Times, hundreds of thousands of homeowners could see their flood insurance rates jump as early as this fall, according to new research from First Street Foundation. In the most flood-prone areas of the U.S., those rates should more than quadruple. Premium increases of more than $10,000 are necessary for the insurance on approximately 265,000 homes to match their corresponding level of risk.