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
| Feb 17, 2012
Union/employer collaboration on the rise aimed at exceeding OSHA safety standards
Unions have learned to help employers win contracts with bids made competitive through good safety practices.
| Feb 16, 2012
Gain greater agility and profitability with ArchiCAD BIM software
White paper was written with the sole purpose of providing accurate, reliable information about critical issues related to BIM and what ArchiCAD with advanced technology such as the GRAPHISOFT BIM Server provide as an answer to address these issues.
| Feb 9, 2012
Initiative to sell off under-used federal property gaining momentum
The bill is similar to a White House planto cut $8 billion worth of building costs by the end of the 2012 fiscal year, and to establish a panel to identify other sites worth selling or donating to nonprofits or state and local governments.
| Feb 9, 2012
Computer tool helps engineers design roof cladding using Canada's building code
Easier to design roof cladding that can withstand winds in a given area.
| Feb 9, 2012
Webinar focuses on lessons learned from LEED-certified industrial project
This case study will focus on strategies used to save the client money, achieve certification, and effectively market success once the project was complete.
| Feb 9, 2012
Rapid growth of zero energy buildings expected
Much of that growth will be in the European Union, where near-zero energy buildings are mandated by 2019 for public buildings, and by 2021 for all construction.
| Feb 9, 2012
Stiffer OSHA fines put strain on Kansas contractors
A fine for a violation that once cost between $750 and $1,200 now runs $7,000 or more per incident, according to a state industry association official.
| Feb 9, 2012
Webinar focuses on lessons learned from LEED-certified industrial project
A Construction Specifications Institute webinar will focus on the lessons learned through the design and construction of a LEED-certified industrial project, Better Living Mill Shop, the first industrial building in Central Virginia to earn LEED certification.
| Feb 8, 2012
California likely to eliminate redevelopment agencies
Leaders of California cities had been trying to fashion a compromise with lawmakers after the state Supreme Court ruled the state had the authority to eliminate the agencies and use their property tax money for local services.
