ABSTRACT

National Flood Insurance Program: The Current Rating Structure and Risk Rating 2.0 [Updated November 2, 2021]   [open pdf - 1MB]

From the Introduction: "The National Flood Insurance Program (NFIP) is the primary source of flood insurance coverage for residential properties in the United States, with more than 5 million policies in 22,500 communities in 56 states and jurisdictions. The program collects about $4.6 billion in annual revenue from policyholders' premiums, fees and surcharges and provides over $1.3 trillion in coverage. The NFIP was established by the National Flood Insurance Act of 1968. The general purpose of the NFIP is both to offer primary flood insurance to properties with significant flood risk, and to reduce flood risk through the adoption of floodplain management standards. A longer-term objective of the NFIP is to reduce federal expenditure on disaster assistance after floods. The Federal Emergency Management Agency (FEMA), which administers the NFIP, is planning to introduce Risk Rating 2.0, which represents the biggest change to the way the NFIP calculates flood insurance premiums since its inception. The new premium rates went into effect on October 1, 2021, for new NFIP policies only. The new rates for existing NFIP policyholders are to take effect on April 1, 2022."

Report Number:
CRS Report for Congress, R45999
Author:
Publisher:
Date:
2021-11-02
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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