In contrast to the trendy ranking methodology utilized by personal market flood insurance coverage firms, FEMA’s ranking system for pricing insurance policies previous to October 1, 2021, used older danger ranking strategies targeted on 100-year flood maps coupled with constructing elevation. By implementing Threat Score 2.0, the NFIP has enriched its knowledge to incorporate third-party sources, added new ranking standards, and leveraged expertise to charge insurance policies primarily based on particular person property dangers. In brief, due to Threat Score 2.0, NFIP charges will go up for some property homeowners, however down for others. This modification goals to cost flood danger extra precisely primarily based on fashionable ranking methodology and a greater understanding of per-property loss danger.
