Without a doubt, Crisfield and numerous parts of low-lying Somerset County have suffered from flooding over the years and property owners know the devastation floods can cause to communities.

Floods take a toll on individuals, businesses, in addition to local and state governments.  

According to the CDC, flooding is the leading cause of storm related deaths in the U.S. The cost of flooding was approximately $17 billion annually between 2010 and 2018.  Floods are the most common and costly natural disasters in the United States. Just one inch of floodwater can cause up to $25,000 in damage.   

For the past four years, hurricanes have caused above-average flooding. This year, FEMA expects more of the same. Protecting a home or business from unexpected flood damage with flood insurance is the best way to mitigate the impacts of flood damage. 

The National Flood Insurance Program (NFIP), administered by FEMA, provides affordable insurance to property owners, and encourages communities to adopt and enforce floodplain management regulations. 

Realizing the importance of flood insurance, FEMA is taking powerful steps to help make sure flood insurance is more affordable and equitable for everyone, as FEMA works to lead a whole of community approach to climate resilience and promotes a more hazard prepared nation. Risk Rating 2.0 is FEMA’s update of the National Flood Insurance Program's (NFIP) risk rating methodology through the implementation of a new pricing methodology.

The methodology leverages industry best practices and cutting-edge technology to enable FEMA to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk. 

In Phase 1 which began Oct. 1, 2021,  new policies were subject to the new rating methodology. Also beginning Oct. 1, existing policyholders eligible for renewal were able to begin taking advantage of immediate decreases in their premiums.

Now FEMA is in Phase 2 with its equitable and efficient risk rating which took effect April 1, 2022, and here’s why it’s important: 

With Risk Rating 2.0, FEMA now has the capability and tools to address rating disparities by incorporating more flood risk variables. These include flood frequency, multiple flood types—river overflow, storm surge, coastal erosion, and heavy rainfall—and distance to a water source along with property characteristics such as elevation and the cost to rebuild. 

Currently, policyholders with lower-valued homes are paying more than their share of the risk while policyholders with higher-valued homes are paying less than their share of the risk. Because Risk Rating 2.0 considers rebuilding costs, FEMA can equitably distribute premiums across all policyholders based on home value and a property’s unique flood risk. 

For more details about Risk Rating 2.0, please visit: Risk Rating 2.0: Equity in Action | FEMA.gov.