FEMA Implements New Plan For Accurate Flood Risk Rates
The Federal Emergency Management Agency has implemented a new pricing system for the National Flood Insurance Program, one that is said to deliver more accurate rates that reflect the flood risk of a property.
FEMA’s website explains that the new system, Risk Rating 2.0, is a method that “leverages industry best practices and cutting-edge technology” to enable the organization to better gauge and communicate risk levels. According to its press release, individuals will no longer pay more than their share in flood insurance premiums based on the value of their homes.
Statewide, about 50 percent of flood-risk policyholders saw an increase of no more than $10 per month with the implementation of Risk Rating 2.0. The numbers in Falmouth are comparable, with about 49.4 percent of policyholders seeing a maximum increase of $10. The second-largest group—about 39.4 percent of policyholders—saw a decrease in their monthly premiums.
Smaller slices of the population saw an increase greater than $10 per month; about 7 percent will see an increase between $10-$20 per month, and only about 4 percent will see increases greater than $20 per month.
Broken down by ZIP Code, FEMA’s map shows Woods Hole as one of the more disproportionately affected areas by the implementation of Risk Rating 2.0. With only 99 policies in the 02543 ZIP Code that represents the Woods Hole village, 20.2 percent of those properties—20 properties total—will see an increase greater than $20 each month. In other areas of Falmouth, such as the 02536 ZIP Code, only 13 policies out of 813 will see an increase of $20 and up, which equates to about 1.6 percent.