Flood Insurance Reform
Link to FEMA’s Flood Insurance Reform webpage that discusses the history of the formation of the NFIP, the current state of nation-wide mapping, legislation and its impacts on the NFIP, rate changes, how we work with our partners, like Write Your Own private insurance companies, and more.
Background: In 1968, Congress created the NFIP to provide a means for property owners to protect themselves financially from flood events. The NFIP offers flood insurance to homeowners, renters and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce floodplain management ordinances that meet or exceed FEMA requirements.
Since the NFIP’s inception, additional legislation has been enacted to strengthen the program, ensure its fiscal soundness and inform its mapping and insurance rate-setting through expert consultation, reports and studies.
Today the program is focused on implementing recent legislation by adjusting premium increases, issuing new rates and map updates, supporting mitigation and ensuring special advocacy to connect policyholders with the information they need to better understand the program.
FEMA Releases New Flood Insurance Resources
May 2022
Risk Rating 2.0: Equity in Action
If a property owner doesn’t know their flood risk, they cannot know their premium rate or what mitigation actions to consider.
As FEMA rolled out the NFIP’s new rating system, Risk Rating 2.0: Equity in Action, the agency has heard questions from policyholders and industry partners such as, “How does FEMA calculate my rate?” and “How can I reduce my flood risk and pay less?”
To provide answers to these important questions, FEMA has published new materials to the Risk Rating 2.0: Equity in Action resource webpage on FloodSmart.gov.
FEMA Releases Simple Guides Under Risk Rating 2.0: Equity in Action
June 2022
FEMA releases Simple Guides for nine different types of structures and their unique characteristics to help agents generate flood insurance policy quotes easier under Risk Rating 2.0: Equity in Action.
For the first time in the National Flood Insurance Program’s history, policyholders pay premiums that fairly reflect what it costs to insure their property based on their unique flood risk under Risk Rating 2.0: Equity in Action. This great change involves many factors and takes time to learn and fully implement.
The guides provide snapshots of important information included in the Flood Insurance Manual and can be used when searching for quick answers and tips. They contain key aspects of the rating and quoting elements for agents and are helpful two-page resources for anyone who wants to understand how flood risk and rates are calculated.
- Single Family Homes
- Residential Condo Building
- Two-to-Four Family Building
- Residential Unit
- Residential Mobile Home
- Other Residential Units
- Non-Residential Building
- Non-Residential Unit
- Non-Residential Mobile Building
To read the nine Simple Guides and other flood insurance resources visit, Risk Rating 2.0: Equity in Action on FloodSmart.gov.
FEMA Releases New Flood Insurance Resources
May 2022
If a property owner doesn’t know their flood risk, they cannot know their premium rate or what mitigation actions to consider.
To provide answers to these important questions, FEMA has published new materials to the Risk Rating 2.0: Equity in Action resource webpage on FloodSmart.gov.
As FEMA rolled out the National Flood Insurance Program’s new rating system, Risk Rating 2.0: Equity in Action, the agency has heard questions from policyholders and industry partners such as, “How does FEMA calculate my rate?” and “How can I reduce my flood risk and pay less?”
These user-friendly educational tools are a part of the agency’s commitment to increasing transparency and communication. The materials provide in-depth explanations on topics ranging from flood risk variables and individualized policy pricing to discounts and other options available to policyholders.
This collection is updated regularly and insurance providers are encouraged to use and share these resources to help their clients protect lives and to help close the flood insurance gap.
What’s Changed in Risk Rating 2.0 and CRS
May 2022
Risk Rating 2.0 (RR 2.0) rating methodology now incorporates a wide range of rating variables; however, two major ones that are no longer used are Base Flood Elevations and flood zones. In the old methodology (RR 1.0), properties in moderate-low risk zones (e.g., B, C, X) with minimal losses could qualify for a lower-cost Preferred Risk Policy (PRP); however, they did not receive a CRS discount. If they did not qualify for the PRP, they could be written as a standard-rated Zone X policy and receive 5% or 10% discount depending upon the CRS Class. Buildings in Zone A would get the full discount.
In RR 2.0, because the flood zone is no longer a rating variable, the discount that had applied to just Zone A policies now applies to all policies. So, a policy in Zone X receives the same discount. While there are numerous variations and nuances.
Link to the two-page Fact Sheet– RR+2.0 Fact Sheet and CRS.
Flood insurance and the NFIP’s new pricing methodology Webinars

Recurring webinar series
FEMA Region 5’s Flood Insurance Liaison will be hosting a series of webinars about flood insurance through the NFIP and the NFIP’s new pricing methodology known as Risk Rating 2.0: Equity in Action.
Topic: Introduction to Flood Insurance through the NFIP
When: Every month on the Third Tuesday at 9:30 AM Central Time.
Where: Zoom. Registration required.
This webinar will introduce key concepts of the NFIP including:
1) Flood insurance compared to disaster assistance
2) Eligibility to purchase flood insurance
3) Coverages
4) Loss settlement (claims) and appeal
Topic: Introduction to the NFIP’s New Pricing Methodology (Risk Rating 2.0: Equity in Action)
When: Every month on the Third Tuesday at 1:00 PM Central Time.
Registration Link: Zoom. Registration required.
This webinar will introduce attendees to fundamental concepts of the NFIP’s new pricing methodology (Risk Rating 2.0). Topics covered include a comparison of the legacy and new methodology, rating variables, and transition rules.
In most cases, there is a 30-day waiting period before flood insurance policies become effective. Start your preparations early by learning more about flood insurance today.
For more information on the NFIP’s new pricing methodology, visit Risk Rating 2.0: Equity in Action | FEMA.gov.
WYO Program Bulletins
FEMA periodically issues WYO Program Bulletins related to recent legislative changes and clarifications to the NFIP Flood Insurance Manual. The bulletins are posted at http://www.nfipiservice.com/nfip_docs.html.
KAMM mailing address: KAMM, PO Box 1016, Frankfort, KY 40602-1016.
Have questions, contact us at kentuckymitigation@gmail.com. Don’t forget to join the KAMM group on Facebook and LinkedIn.