Did you know you may be able to lower your flood insurance?
Recently I had a client tell me that she got a notice from her mortgage company that her escrow needed to increase to cover her new flood insurance premium. She was also told that the lender could provide the insurance at one rate and to contact her personal agent, which she did. To her astonishment, that rate was even higher. That led her to contact one more insurance company and she was told that her rate would decrease, not increase, due to the new risk rate 2.0.
Risk rate 2.0 flood refers to the updated methodology developed by the Federal Emergency Management Agency (FEMA) for assessing flood risk in the United States. This new methodology takes into account a wider range of factors than the previous version, Risk rate 1.0, including updated data on rainfall, river flow, and sea level rise. By incorporating these additional factors, Risk rate 2.0 provides a more comprehensive assessment of flood risk, which is essential for communities to plan for and mitigate the impacts of flooding.
One of the key improvements of Risk rate 2.0 is the incorporation of updated data on rainfall patterns. As extreme weather events become more frequent and intense due to climate change, it is important to have accurate information on precipitation levels to understand the potential for flooding. Additionally, the new methodology includes updated data on river flow and sea level rise, which are critical factors in assessing the risk of flooding in coastal areas. By incorporating all of these factors, Risk rate 2.0 provides a more accurate and detailed assessment of flood risk, which can help communities take proactive measures to reduce their vulnerability to flooding.
Contact your agent to see if your policy can be lowered on the next renewal. It's worth a couple of phone calls.