NAMIC: Delaying Risk Rating 2.0 Leaves Americans Vulnerable to Floods

The Federal Emergency Management Agency will leave millions of homeowners at greater risk of flooding with a decision to delay implementation of the Risk Rating 2.0 plan for the National Flood Insurance Program, the National Association of Mutual Insurance Companies said today.

“Delaying implementation of the Risk Rating 2.0 is troubling, though not surprising,” said Jimi Grande, senior vice president of government affairs for NAMIC. “For far too long, the NFIP has been kept on life support through subsidies and taxpayer-funded bailouts. Delaying Risk Rating 2.0 will keep that status quo rather than doing the hard work of addressing the NFIP’s structural and financial flaws and runs counter to FEMA’s goal of doubling the take-up rates for flood policies by 2022.”

The Risk Rating 2.0 system will make major changes to the NFIP rating methodology, including using private-sector data to calculate the real flood threat for each home covered by the program. It would also, for the first time, differentiate coastal flood risk from other types of flooding and incorporate the actual cost of rebuilding a structure into NFIP rates. The system had been set for an Oct. 2020 launch but is now scheduled to be implemented in 2021. On March 18, as FEMA unveiled Risk Rating 2.0, NAMIC applauded the move, which the association said will make the NFIP more like an actual insurance program.

“Virtually every home in America faces some risk of flooding, and every homeowner should be able to know how great their risk is,” Grande said. “In the past few years, we’ve seen communities from coast to coast devastated by flooding. Delaying Risk Rating 2.0 effectively encourages continued development in flood-prone areas and, worse, will leave homeowners across the country with fewer choices for flood insurance, making them more vulnerable to flood risks they oftentimes have no idea even exists.”

Article Posted: 11.08.19
Last Updated: 11.08.19


Matt Brady
Senior Director of Advocacy Communications