FEMA said the new policy will be a fairer way to calculate rates based on the risk of the insured’s property.
Anna Weber, senior policy analyst at the Natural Resources Defense Council, explains how the rates will be calculated under the new policy.
âPreviously, the rates were basically set depending on whether or not you were in the mapped floodplain. You are either indoors or outdoors. With the new method, it is much more individual. of your individual property is higher or lower, that A result of this change, because it is more individual to your specific property, means that if you have a cheaper home, you will no longer be subsidizing insurance against flooding from people who live in more expensive housing, homes, all other things being equal, âWeber explained.
Weber went on to explain that this was the first major change to the way flood insurance rates are calculated since the 1970s. If you already have flood insurance you won’t see any changes. at your rate before 2022.
âThe change that will take effect on October 1 only affects new policies. So if you are buying a new home and need flood insurance for the first time, the new rates will take effect tomorrow. For existing policyholders, there will be no change until April, and then it will be when you renew your policy for next year, âWeber explained.
Here’s a look at the premium changes planned for the first year across Texas.
According to FEMA:
- 14% of policies will see their cost drop
- 79% will increase from $ 0 to $ 10 per month
- 4% will increase from $ 10 to $ 20 per month
- 3% will increase by more than $ 20 per month
In Harris County, FEMA reports that there are 334,287 total flood insurance policies.
Of these, 37,828 will decrease in cost; 287,307 will increase from $ 0 to $ 20 per month and 9,152 will increase by more than $ 20 per month.
You can obtain more information and observe the evolution of the tariffs for each postal code on this dashboard.
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