"I think around 80% of everyone in Florida is going to have an increase on their flood insurance program, so will they increase $100 or $1,000? It's going to be a hard job to shop around and get people options," said Luis Gazitua, partner at Miami-based JAG Insurance Group. (Credit: Zastolskiy Victor/Shutterstock.com)
The updated flood risk pricing methodology, which marks the biggest change in calculations since 1968, is expected to bring price hikes and disruption. Here's what the shift might mean for real estate clients.
Risk Rating 2.0, means Federal Emergency Management Administration (FEMA) won't use flood zones to calculate flood insurance rates and will instead look at a property individually to determine its risk. Factors used to gauge the risk include the distance to water, elevation, foundation type, structure replacement cost, and how many and what types of floods affect a property.
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Melea VanOstrand
Melea VanOstrand oversees the Daily Business Review as ALM's Florida Bureau Chief. Email Melea at [email protected] or follow her on her Twitter or Facebook pages.
