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
| Jan 16, 2013
Pentagon plans huge spending cuts, including construction funds, amid budget deadlock fears
Defense Secretary Leon Panetta has ordered cuts to military spending as a precaution in case the White House and Congress fail to agree to avert $52 billion in cuts to the Pentagon budget this year.
| Jan 16, 2013
GSA's Green Proving Ground program pushes energy efficiency
The General Services Administration, which manages a portfolio of almost 10,000 buildings, is using the Green Proving Ground program to test technological advances in energy efficiency.
| Jan 16, 2013
Standards that include reflective roofs must take into account local climate
Roofs painted white can reflect heat and reduce warm-weather energy use, but in cooler regions like Minneapolis or Chicago, the issue of energy-efficiency is less straightforward.
| Jan 16, 2013
New standard for geothermal heat pump systems piping to be included in 2015 International Mechanical Code
NSF International, an independent global organization that writes standards, and tests and certifies products, has published the first in a series of American National Standards for Ground-Source Geothermal Piping Systems – NSF/ANSI 358-1.
| Jan 16, 2013
ANSI passes new safety standards for reinforcing steel and post-tensioning
The ANSI A10 Accredited Standards Committee for Construction and Demolition Operations recently approved amendments to the ANSI A10.9 Concrete and Masonry Standard.
| Jan 8, 2013
Congress passes Drywall Safety Act
Congress recently passed the Drywall Safety Act; President Barack Obama is expected to sign it soon.
| Jan 8, 2013
Building-integrated PVs could help boost green standards over the next few years
A developing technology could begin to have an impact on sustainable standards over the next few years.
| Jan 8, 2013
Revamp of codes among nine low tech steps to raise community resiliency
Updating of local zoning and building codes is one of nine low-tech steps that can boost sustainability and storm resiliency, according to this article.
| Jan 8, 2013
Group releases safety and building codes from 24 countries
Public.Resource.Org released 10,062 public safety documents including building codes covering 24 countries and 6 regions.
| Jan 8, 2013
Montana developing high-performance building standards for state projects
The Montana Department of Administration is developing a single building standard for all state facilities, and hopes to have a plan in place this spring.
