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 | Oct 17, 2019
Slow payments cost GCs and subs $64 billion annually
Study finds 51-day average payment turnaround.
Codes and Standards | Oct 16, 2019
Cool pavement can make people hotter
Reflective coatings channel sunlight raising temperatures where pedestrians walk.
Codes and Standards | Oct 15, 2019
Utah adopts 2018 International Energy Conservation Code
Provisions include increased building envelope performance and reduced air infiltration.
Codes and Standards | Oct 14, 2019
States continue to beef up energy efficiency codes
ACEEE 50-state scorecard finds latest IECC code gaining adherents.
Codes and Standards | Oct 9, 2019
DOE releases Better Buildings Healthcare Financing Primer
Outlines financial strategies to implement energy-efficiency projects in healthcare.
Codes and Standards | Oct 8, 2019
Zero Carbon Buildings for All aims for ambitious emission reduction targets
Organization makes commitment to net zero carbon for all buildings by 2050.
Codes and Standards | Oct 7, 2019
Tailgating remains a critical building security threat, say security professionals
Few buildings provide beefed up provisions to counteract threat.
Codes and Standards | Oct 7, 2019
New seismic standard to evaluate, retrofit existing structural steel buildings open for review
AISC seeks input through Nov. 4.
Codes and Standards | Sep 27, 2019
Open source tool allows comparison of embodied carbon emissions from construction materials
Enables carbon-smart choices during material specification and procurement.
Codes and Standards | Sep 27, 2019
AIA declaration: Climate change requires ‘holistic approach’
Must address interdependencies among people, buildings, infrastructure, and the environment.
