Beginning April 1, all flood policies must be priced under Risk Rating 2.0 at renewal. FEMA is offering new webinars that will focus on renewals under Risk Rating 2.0.
Risk Rating 2.0, FEMA's new pricing methodology for the National Flood Insurance Program (NFIP), went into effect Oct. 1, 2021, for all new policies and some existing policies in which the consumer would see a lower rate with Risk Rating 2.0.
The NFIP has now moved into Phase II of Risk Rating 2.0, which focuses on transitioning all existing policies. Beginning April 1, all policies must be priced under Risk Rating 2.0 at renewal. With April 1 just around the corner, FEMA is offering new webinars that will focus on renewals under Risk Rating 2.0.
The free webinars will cover:
- Necessary rating variables for renewal policies
- Mitigation discounts available to a policyholder
- Annual increase cap discount
- Provisional rates
- Changes to the lapse in coverage rule
Agents can sign up for any of these webinars:
If agents are unable to attend the webinars on the dates in March, FEMA will host sessions on April 6, 12, 19, 21 and 27. Agents can also visit the NFIP website for updates and to access the latest documents for Risk Rating 2.0.
As of press time, the U.S. Senate was expected to pass legislation that would fund the government through Sept. 30, 2022, ahead of the necessary deadline. The legislation would also reauthorize the NFIP for the same period. The NFIP is currently scheduled to expire on Friday, March 11, the same date government funding is scheduled to run out. The legislation had previously passed the U.S. House of Representatives and President Joe Biden is expected to sign it into law.
Avoiding a lapse in the program remains a priority for the Big “I." Once the NFIP is reauthorized, the association looks forward to continuing to work with Congress and the administration to enact a long-term reauthorization of a modernized program that would increase take-up rates for flood insurance, both in the NFIP and in the private market.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.
