FEMA has announced that implementation of its redesigned rating system, Risk Rating 2.0, will be delayed one year. Implementation will now occur 10/1/21, as opposed to 10/1/2020. For more information on the delay, you can find FEMA’s statement here. According to FEMA, the extension will allow for all policies – commercial, as well as residential – to change over to the new system.

FEMA has said that the new rating system will deliver rates that better reflect a property’s unique flood risk, modernizing the rating methodology and incorporating industry technology with the NFIP’s mapping data. FEMA’s announcement of the delay is encouraging news, given how many questions remain about how Risk Rating 2.0 will work and how the cost of flood insurance will be impacted. We are hopeful that FEMA will engage closely with stakeholder groups as it works to roll out the new system.

Learn more about Risk Rating 2.0 here.