However, according to First Street Foundation, a nonprofit research group focused on climate impacts on property value, the majority of Floridians face a higher flood risk than their insurance costs would indicate. According to the report, nine of the top 10 counties in terms of total estimated annual economic damage across the entire U.S. Almost 70 percent of plans will increase by no more than $120 a year 8 percent will climb no more than $240 a year and just 4 percent will grow by more than $240 a year. According to Florida FEMA data, 20 percent of plans will decrease for those who were overpaying for their risk of flood. Why is FEMA still writing checks for those who continue to build there?' says David McMahon, a local insurance agent who has been with Atlas Insurance for almost 20 years.īut the new rating system isn’t only about rates going up. For example, there are structures that will continually be built in the same place where they had a flood. Calculations were more generic in the past. “If you're right on the water versus inland, the rate shouldn't be the same. Risk Rating 2.0 allows FEMA to calculate premiums more equitably across all policyholders based on the value of the home and an individual property’s flood risk. The result has been a program that subsidizes more affluent coastal homeowners at the expense of those with flood insurance policies who live further inland, in lower flood risk zones.īut over the years, technology has evolved and so has FEMA’s understanding of flood risk. Until now, the program has priced flood insurance policies based largely on whether a home is inside what’s called the 100-year flood plain–land expected to flood during a major storm. The program was heavily subsidized and the current rating methodology has not changed since the 1970s.

Flood insurance cost florida