Viewpoint: Flood insurance evolves | Business Insurance
One thing that may have been overlooked in the Federal Emergency Management Agency's recent release of Risk Rating 2.0 - the first major update to the National Flood Insurance Program's pricing system in 50 years - is that the new pricing system is for businesses as well as for Homeowner applies. Commercial real estate accounts for 4% or 199,394 of the total NFIP guidelines, according to market sources. In this regard, NFIP provides approximately $ 1.3 trillion in flood insurance coverage to more than 5 million policyholders in the United States. The new pricing system applies to all properties insured through the NFIP, and all categories of policies are increased or decreased. Risk Assessment 2.0 aims to provide actuarially sound flood insurance rates that should be fairer and more understandable to policyholders by leveraging improved technology and understanding of flood risk. For policyholders, the change means that premiums are based on the value and specific flood r...