FEMA’s new flood insurance plan will drastically raise the cost of insuring coastal properties.
Called Risk Rating 2.0, the recently released plan is widely believed to more accurately reflect flood risks. But it is also likely to lead to a decreased property values along with higher insurance premiums.
Risk Rating 2.0 is the first major update to the government insurance program’s risk analysis system since the National Flood Insurance Program emerged in the late 1960s. The old system provided a flat risk estimate for an entire floodplain. The new system estimates the individual risk facing each home, incorporating new data about water dynamics and replacement costs.
The old system did not consider the replacement cost of a house, so owners of low-value homes subsidized those with more valuable properties. Homeowners will now pay premiums for the specific flood risk for their home, rather than for their general area.
Related Stories
Codes and Standards | Apr 18, 2017
K-12 school daylighting initiative created to promote best practices
Eneref Institute creates networking group of school administrators for ideas to overcome market obstacles.
Codes and Standards | Apr 17, 2017
OSHA delays enforcing crystalline silica standard in construction industry
Enforcement will begin Sept. 23, three months later than planned.
Codes and Standards | Apr 13, 2017
Former OSHA official publishes safety citations on his own
Under Trump orders, agency had stopped issuing ‘shaming’ press releases on major fines and safety violations.
Codes and Standards | Apr 12, 2017
Trump infrastructure task force suggests arbitration to speed projects
Permitting process could be reduced from 10 years to 2 years under the proposal.
Codes and Standards | Apr 11, 2017
2017 National Energy Codes Conference includes code boot camp, PNC Tower tour
The DOE-sponsored event will be held in Pittsburgh July 17-20.
Codes and Standards | Apr 10, 2017
Congressional hearing on skills gap includes look at construction industry
Strategies to boost ranks of construction workers include mentoring programs, increased safety measures, trade group support, and outreach to school counselors.
Codes and Standards | Apr 6, 2017
Product-specific EPDs seen as key aid to earning green building credits
The product-specific EPDs allow designers to more quickly earn a LEED v4 credit in the Materials & Resources category.
Codes and Standards | Apr 5, 2017
Updated AIA Disaster Assistance Handbook released with significant enhancements
Updates provide guidance on how design and construction pros and emergency managers can work together to prepare for and respond to disasters.
Codes and Standards | Apr 4, 2017
Global standards for indoor environmental monitoring under development
Systems and sensors guidelines will be aligned with major green standards.
Codes and Standards | Apr 3, 2017
New standard test method for static loading and impact on exterior shading released
The method provides a standard lab procedure evaluation of ice and snow loads and impacts.
