The NFIP is administered by the Federal Emergency Management Agency (FEMA) and allows property owners in participating communities to buy insurance to protect against flood losses. Under federal law, the purchase of flood insurance is mandatory for all federal or federally related financial assistance, including home mortgage loans, for the acquisition and/or construction of buildings in high-risk flood areas (Special Flood Hazard Areas or SFHAs). Florida is an important state within the NFIP, as it holds one-third of all policies nationwide (1.77 million out of 5.5 million). According to the Florida Division of Emergency Management (FDEM), Florida policy holders pay more than $940 million annually into the NFIP and, since 1978, have received over $4.1 billion in flood claims.

Over the past several years, numerous changes have been made to the NFIP, particularly as they relate to premiums and how properties are rated for risk.  The most recent change when into effect on October 1, 2021. Specifically, FEMA has updated its risk rating methodology through the implementation of a new pricing methodology called Risk Rating 2.0.  According to FEMA, the methodology leverages industry best practices and cutting-edge technology to enable the agency to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk.  This webinar provides and overview of the NFIP and how the new Risk Rating 2.0 will affect Florida and Florida Counties.