A lot of dynamic changes are taking place in the flood insurance world, and I’ve brought in Li-Hsi “Leash” Yu once more to talk about some of these changes and how they affect you.
The two questions he gets asked most often from homeowners are “What’s happening to my flood zone?” and “What’s happening to the flood rates?”
FEMA is initiating a new program called Risk Rating 2.0 in order to rate flood risk across the nation. At the moment, if you live in Zone X (a low-to-moderate risk zone), you get a base rate. If you live in a high-risk zone, you get a different rate that’s based on your elevation. Risk Rating 2.0 will add a few more components to this rating system, including how far you live from a flood source (e.g., the coast) and how much your home is worth.
“The closer you live to the coast, the more you may have to pay in flood insurance.”
October 2020 is the slotted start date for this new system, but they’re working on changing the flood rates now. Keep in mind that the closer you live to the coast, the more you may have to pay in flood insurance. At the moment, there’s no way of knowing whether your flood rate will increase or decrease, so you shouldn’t worry about it.
If you’d like an in-depth overview of Risk Rating 2.0, check out this link. If you have any more questions about this topic, you can give Li-Hsi a call at (713) 688-8881.
As always, if you have any more real estate questions or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.