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
Concrete | Jun 7, 2016
Concrete Institute publishes document providing concrete curing guidance
New curing monitoring techniques included.
Energy | Jun 7, 2016
Energy modeling payback typically as short as one to two months
Energy modeling is a ‘no-brainer—like checking MPG on a car’
Green | Jun 2, 2016
USGBC offers new LEED pilot credit: Building Material Human Hazard and Exposure Assessment
For assessing human health-related exposure scenarios for construction products.
Resiliency | Jun 1, 2016
Federal agencies boost standards for more resilient construction
HUD, FEMA, GSA, Army Corps of Engineers make policy changes.
Green | May 31, 2016
Miami Beach requires developers to meet green standards or pay a fee
Applies to structures larger than 7,000 sf.
Codes and Standards | May 27, 2016
Better enforcement needed for successful implementation of energy efficiency policies
Commercial buildings the focus of recent code initiatives.
Codes and Standards | May 25, 2016
LEED Dynamic is worth the effort, says commercial real estate executive
San Diego office tower is California’s first office building to receive LEED Dynamic plaque in recertification.
Codes and Standards | May 24, 2016
Ontario planning to spend $7 billion on wide-ranging climate change plan
Includes financial incentives to retrofit buildings.
Codes and Standards | May 23, 2016
Facility managers say Internet of Things, analytics will impact maintenance soon
More reliable data needed for optimal results from the technology.
Codes and Standards | May 20, 2016
Industry leaders call for wider use of bamboo as a building material
Benefits include seismic resiliency and sustainability.
