New Flood Rate Changes

New Flood Rate Changes

Effective October 1st, 2021, flood rates may change drastically. The new rating structure coined “Risk Rating 2.0” utilizes a few different methods of assessing property risk, bringing the new rates closer to the actual estimate for homeowner premiums.

Homeowners with existing flood insurance policies will be subject to the new rates beginning with the next renewal after April 1st, 2022. New policy holders, where there is no flood insurance policy currently in place on the property, will be subject to the new rating and full risk premium beginning October 1st.



Some things to note

  • Premiums cannot legally increase more than 18% per year under existing federal law. Policy renewals will see up to an 18% annual increase until they reach the full risk rate.
  • New buyers can still assume a seller’s existing flood policy. Doing so will allow them to take advantage of the 18% cap on annual premium increases.
  • Rate increases will not continue indefinitely according to FEMA, each property has a unique policy.


Some homeowners have already seen this in effect and have inquired about lowering this rate. There are potential mitigation opportunities at your state, tribe, territory and community levels but, individuals can implement at-will options to collectively assist in reducing policyholder flood rates.



Individual Level Mitigation actions

  • Acquire a Flood Elevation Certificate then submit to your agent to determine if it may lower your rate
  • Properly raise your property/building
  • Install flood openings in a crawlspace to allow for minimal damage



If you have any questions or concerns regarding the updated policies, your individual policy or general inquiries, please contact a Witry Collective team member. Our office line is 504.291.2022 or email [email protected].


Visit FEMA’s Risk Rating 2.0: Equity in Action article to learn more


Witry Collective

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