The Federal Emergency Management Agency (FEMA) is releasing its new risk rating methodology that will create new pricing for National Flood Insurance Program (NFIP) policies beginning Oct. 1, 2021. The NFIP is managed by FEMA and used by homeowners, business owners and renters to purchase federally backed flood insurance in risk areas. FEMA explained that… Continue reading Data Shows FEMA’s New Flood Insurance Methodology Could Cause Rate Drop for 1.2M Policyholders
Tag: NFIP
FEMA’s New Director Prepares Agency for a Hot, Chaotic Future
Deanne Criswell, the first woman to lead the Federal Emergency Management Agency, in April took over a 20,000-person operation exhausted by managing responses to disasters linked to global warming: wildfires and the 2020 hurricane season, the most active on record. As if that weren’t enough, President Joe Biden asked FEMA to create and staff sites… Continue reading FEMA’s New Director Prepares Agency for a Hot, Chaotic Future
FEMA Overhauls the NFIP, Accounts for Climate Change
Climate change and its devastating impact are accelerating faster than ever, according to a new report from the United Nations’ Intergovernmental Panel on Climate Change. Hurricanes are becoming stronger, rainfall heavier and flood risk higher. Yet, America’s National Flood Insurance Program hasn’t changed at all since its inception. But it is about to. Under the… Continue reading FEMA Overhauls the NFIP, Accounts for Climate Change
NFIP Leaves Out Communities of Color, Lower-Income Americans, Report Finds
Less than 10% of the flood risk to single-family homes in America is actually insured by the national program designed to offer such protection, with communities of color and lower-income areas disproportionately less likely to be covered. That analysis, described as “a toxin sitting in the residential real estate market that will only worsen with… Continue reading NFIP Leaves Out Communities of Color, Lower-Income Americans, Report Finds
Higher Value Homes Mean Higher Insurance Premiums under New Flood System
The Federal Emergency Management Agency on Friday unveiled the details of an overhaul to its beleaguered National Flood Insurance Program, the initiative’s first major update in 50 years. Most homeowners in the program will have lower or stable premiums, but roughly 11% of homes—largely the highest value ones—will see increases in premiums of at least… Continue reading Higher Value Homes Mean Higher Insurance Premiums under New Flood System
New York Senator Stalls Climate Overhaul of Flood Insurance Program
One of the federal government’s main efforts to push Americans to prepare for climate threats is in question after the Senate majority leader’s office objected to a plan to adjust flood insurance rates. The Federal Emergency Management Agency was preparing to announce new rates for federal flood insurance on April 1, so that the prices… Continue reading New York Senator Stalls Climate Overhaul of Flood Insurance Program
Study Finds that Floridians Are Underpaying for Flood Insurance
If you live in Florida, you should probably be paying more for flood insurance. And you likely will be soon. That first finding is the conclusion of a new analysis by First Street Foundation, a nonprofit research group focused on climate impacts on property value, which found that the majority of Floridians face a higher… Continue reading Study Finds that Floridians Are Underpaying for Flood Insurance
Climate Threats Could Mean Big Jumps in Flood Insurance Costs This Year
The cost of federal flood insurance will need to increase significantly in much of the country to meet the growing risks of climate change, new data suggests, creating a political headache for the Biden administration. The National Flood Insurance Program, which provides the vast majority of United States flood insurance policies, would have to quadruple… Continue reading Climate Threats Could Mean Big Jumps in Flood Insurance Costs This Year
Insurers Paid $5B for 2020 Louisiana Hurricane Claims So Far
Insurance companies have paid out $5 billion to thousands of Louisiana customers with damage from the 2020 hurricanes so far. That’s according to data released by Insurance Commissioner Jim Donelon’s office that offers the first detailed look at claims. Policyholders have filed nearly 291,000 claims for property damage, business destruction, lost vehicles and business interruption… Continue reading Insurers Paid $5B for 2020 Louisiana Hurricane Claims So Far
FEMA Announces Reinsurance Program to Manage Future Flood Risk in 2021
FEMA has announced its 2021 traditional reinsurance placement for the National Flood Insurance Program (NFIP), continuing its risk management practice against catastrophic flood losses. Reinsurance is a financial risk management tool used by private insurance companies and public entities to protect themselves from large financial losses. If a qualifying catastrophic flood event occurs, reinsurance companies… Continue reading FEMA Announces Reinsurance Program to Manage Future Flood Risk in 2021