Flood Premiums Set To Soar

 Monday, February 22, 2021

 Insurance Business

New insurance premiums for the federal flood insurance program will soon be unveiled, but experts are concerned that some homeowners will be paying significantly much more than everyone else.

The Federal Emergency Management Agency (FEMA) is set to announce new premiums for the National Flood Insurance Program (NFIP) on April 01.

The agency claims that the premiums were determined through modern flood modeling techniques that more closely reflect the risks faced by individual properties.

Ahead of the premium rate announcement, the First Street Foundation has projected that the NFIP would have to charge homeowners living in high-risk homes inside floodplains as much as four times their current premiums.

The non-profit research group also warned that by the year 2050, increased flooding due to climate change will require a sevenfold increase in premiums. Both FEMA and First Street claim to use the same approach to calculate insurance premiums.
PropertyLegislation & Regulation