Call: 203-637-6655 or email – Kyle Shepard

Flood Zone - Shepard Insurance Group

Flood Insurance 2.0, Delayed to 10/1/2021

Time to get out in Front of Significant Flood Insurance Premiums

It’s of little surprise that FEMA, and then NFIP (National Flood Insurance Program) have a major problem. As the primary provider of flood insurance, and at times running a deficit as high as $50 billion (currently at $20 billion), a fix is in order.

“Flood insurance premiums could rise as much as 4X the current premiums”

According to the details in Risk Rating 2.0, here is what we can expect:

Flood insurance premiums could rise as much as 4X the current premiums for owners needing coverage, with California, Delaware, Florida, South Carolina and Washington being hit the hardest.

The predictive modeling for flood was based upon a 100 year plan. The current flood model has reduced that impact to a 10 year plan and suggests that flood insurance premiums are as much as 500% below what they should be for the risk(s).

The single most important protection built in by the NFIP is that rates cannot increase year over year by more than 18%, but compounded over 10 years that is a potential 523% increase.

Delaying the implementation of Risk Rating 2.0 is a step that just delays the inevitable.

Whether you own a property in a flood zone, or are considering a property in a flood zone, it might be sensible to investigate the flood implications to be better prepared.

First Street Foundation has the details you’ll need for your location search. Take a look and see how your address fares: https://floodfactor.com

In the past FEMA (Federal Emergency Management Agency) has kicked this deficit down the road, but it appears that it is coming soon.

If you need details on the impact of a property in a flood zone email Kyle at kshepard@shepardinsgrp.com or call 203.698.9342 for the critical details.


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