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 | Aug 31, 2021
UK industry group wants mandatory whole-life carbon assessments of buildings
Aims to address hidden emissions embedded in supply chains.
Codes and Standards | Aug 31, 2021
Home electrification will require code upgrades
Residential electric panel capacity must be increased.
Codes and Standards | Aug 30, 2021
Facebook’s new $800 million Arizona data center to save big on water
Will restore more than 200 million gallons of water per year to river basins.
Codes and Standards | Aug 26, 2021
California may require solar on new high-rise residential and commercial buildings
State energy commission approves proposal; Could become law in 2023.
Codes and Standards | Aug 25, 2021
Study finds racism, discrimination common in construction industry
NIBS to share best practices with industry leaders to improve worker treatment.
Codes and Standards | Aug 24, 2021
White paper addresses insulated metal panel specifications for roofs and walls
Pertains to provisions of the National Building Code of Canada.
Codes and Standards | Aug 24, 2021
KTGY releases free resource to reduce carbon footprint in multifamily developments
Helps navigate Denver Green Code measures—a series of voluntary codes.
Codes and Standards | Aug 19, 2021
Massive infrastructure bill includes hundreds of millions for building energy efficiency
Funds allotted for updated code implementation, construction technology, K-12 efficiency programs.
Codes and Standards | Aug 18, 2021
Fannie Mae green bonds program could be greenwashing
Analysis shows significant number of green bond properties become less efficient.
Codes and Standards | Aug 17, 2021
Three Texas cities head list of most environmentally vulnerable
Hazard analysis includes natural disasters and government response categories.