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 25, 2013
Energy modeling needed to overcome ‘plug load problem’ to meet high green standards
Plug loads illustrate how much end-users impact overall building energy use.
| Jan 25, 2013
ASHRAE publishes revised filtration standard, combines Standard 52.1 and 52.2
A newly revised filtration standard from ASHRAE combines two standards aimed at improving the technical accuracy of filter testing.
| Jan 25, 2013
AISC 206-13 standard for structural steel erectors available for review
AISC 206-13, a quality management system standard for structural steel erectors, is now available for public review.
| Jan 25, 2013
Builders Hardware Manufacturers Assn. revises five ANSI hardware standards
The Builders Hardware Manufacturers Association (BHMA) has released five revisions to ANSI/BHMA standards recently been approved by ANSI (American National Standards Institute).
| 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.