The Federal Emergency Management Agency ("FEMA") has deferred implementation of "Risk Rating 2.0."
Earlier this year, FEMA announced that new flood insurance rates for all single-family homes would go into effect nationwide on October 1, 2020.
Now, however, FEMA said in a statement that "some additional time is required to conduct a comprehensive analysis of the proposed rating structure so as to protect policyholders and minimize any unintentional negative effects of the transition."
Therefore, FEMA said, it decided to defer the implementation of Risk Rating 2.0 by one year to October 1, 2021.
FEMA added that, additionally, this extension would allow for all National Flood Insurance Program ("NFIP") policies – including single-family homes, multi-unit, and commercial properties – to change over to the new rating system at one time instead of a phased approach, as it had originally proposed.
Over the course of the next year, FEMA said, it will continue to engage with Congress and other key stakeholders on the NFIP.
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Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].