Mid-America Catastrophe Services

NJ Homeowners Will See Jump In Flood Insurance Premiums with Risk Rating 2.0

 Thursday, June 3, 2021

 NJ.com

Almost 8 in 10 New Jersey homeowners with federal flood insurance would have to pay more for coverage if the Federal Emergency Management Agency’s implements a proposed new rating system.

Known as Risk Rating 2.0, the premiums would be based on several categories, including home values, frequency of floods, erosion, distance to water and rebuilding costs.

For New Jersey, that means that 170,860 of 217,178 current policy holders — or 79% — would see their premiums go up, while the remaining 21% would pay less.

The changes would affect new policyholders beginning Oct. 1 and existing policyholders beginning April 1, 2022.

New Jersey lawmakers are seeking to delay the new rating system from taking effect, as well as renew years-long efforts to overhaul the entire National Flood Insurance Program.
Legislation & Regulation
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