National Flood Insurance Program “NFIP” 2.0 and its effect on Florida Real Estate

With the April 1st FEMA renewal date just a few weeks away, what can YOU do to protect yourself?

FEMA Risk Rating 2.0 Facts:

Starting April 1st, Risk Rating 2.0 will be applied to all existing policies in the 2022 renewal cycle.
Risk Rating 2.0 prices properties by individual property, based on elevation, distance to water, replacement cost
Per FEMA, 80% of all Florida FEMA policies will see a price increase
While pricing is likely to go up for most of the renewals, FEMA has capped the increase in any one year at 18%.
If on Special Flood Hazard (AE, AH, VE), flood insurance is still required for a mortgage.
A seller with an existing FEMA policy can assign a policy in good standing to a new owner prior or at close of the sale — could be huge savings for all involved.
Elevation Certificates are now optional (because elevation data is part of the Risk Rating 2.0 model) — yet may be used to bring down the cost of flood insurance.

For those with existing FEMA Policies:

Your current FEMA policy rate will be ‘Grandfathered’ in as the base price.
FEMA will price your current property with Risk Rating 2.0 pricing upon your renewal date (April 1st or after).
While you may see an increase in your FEMA policy, FEMA will cap any price increase at 18% increase per year.
That said, your FEMA pricing will escalate at that 18% renewal yearly until it hits the new FEMA market price.
If you have a decrease, you will see that immediately in your pricing at the new Risk Rating 2.0 decreased price.

Here are 3 Actions that you can take TODAY:

Check your zip code on FEMA’s Website: Link HERE
Look at your current policy to determine whether you have an existing National Flood Insurance Policy.
If it’s for a home you’re considering purchasing, ask your real estate agent to get a quote on the cost of Flood Insurance in Florida.

Do you still have questions? Connect with a local real estate expert today to answer your questions and help you find a great home with Flood Insurance in Florida in mind.