Risk Rating 2.0 is FEMA’s updated pricing methodology for the National Flood Insurance Program, fully implemented in 2023. Unlike the old system that relied primarily on flood zone maps to determine rates, Risk Rating 2.0 calculates premiums based on individual property characteristics including distance to water sources, flood frequency, property elevation, building replacement cost, and the types of flooding the property faces (river overflow, storm surge, coastal erosion, or heavy rainfall).
For some policyholders, Risk Rating 2.0 resulted in lower premiums, while others saw increases. Properties that were previously underpriced relative to their actual risk experienced the largest increases, with FEMA capping annual increases at 18% per year. Learn more on FEMA’s website. To find out how Risk Rating 2.0 affects your specific property, request a personalized quote from Bridgeway Insurance.
