Historic restructuring of flood insurance begins tomorrow

Hopefully, April 1st doesn’t become an April Fool’s Joke for the NFIP’s Risk Rating 2.0. Though the Risk Rating 2.0 rate structure goes into effect today, the impact will be gradually felt as the new rates kick in upon policy renewal and when new policies are written. A year from now, we will have a better sense of how the socioeconomic impacts of owning a structure in a floodplain will be affected:

>Will it become harder to sell properties that have significantly higher NFIP premiums?
>Will it become easier to sell properties that have significantly lower NFIP premiums?
> Will floodplain land development practices be significantly altered?
>How will the value of such properties be impacted, if at all?
> Will changes in property values have a significant impact on property taxes?

There is still significant political resistance to implementing true risk-based flood insurance rates, especially in coastal and southern states where policies are concentrated. The next year should be an interesting one or the NFIP.

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