The Pike-Scott Farm Bureau wants farmers and homeowners in the area to check with their home insurance provider because flood insurance calculations have changed.
The Federal Emergency Management Agency has updated the National Flood Insurance Program’s risk rating methodology through the implementation of a new pricing methodology called Risk Rating 2.0.
No longer will rates be calculated based on elevation and/or level of flood protection provided by levees alone. New rates will be determined by property value, actual flood risk, and other site factors. Transition to the new rates will be completed in two phases. All new policies taken out will be subject to the new methods, which began on October 1st.
Existing policy holders eligible for renewal should be able to take advantage of immediate decreases in their premiums. All remaining policies renewing on or after April 1st.
Current National Flood Insurance Program policyholders can contact their insurance company or insurance agent to learn more about what Risk Rating 2.0-Equity in Action means to them.