As reported on by The Real Deal South Florida on December 3, 2021, the rollout of the federal flood insurance program’s first overhaul in half a century is frustrating buyers and brokers.
To make the program more financially sustainable, the Federal Emergency Management Association (FEMA) has begun implementing a new pricing system, known as Risk Rating 2.0, sending some property owners in South Florida into a panic out of fear that their rates will skyrocket. Although FEMA has said that the majority of policyholders across the country won’t see huge increases — annual hikes are capped at 18 percent, and two-thirds of policyholders will see monthly increases of $0 to $10 — those in low-lying, coastal areas are skeptical.
“Because this is the government, not everything is crystal clear,” said Brian Boak, director of risk management for the property management firm AKAM. “The idea of this was to make it more transparent, and now it’s less transparent.” https://therealdeal.com/issues_articles/a-rising-tide/