Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, April 23, 2021
FEMA Rate Hike Socks 87% of Hawaii Flood Insurance Policyholders
By News Release @ 3:47 AM :: 2968 Views :: Hawaii Statistics, Cost of Living

3.8 Million Homeowners Will Pay More for Flood Insurance Under New NFIP Rules

Over 10,000 homeowners each in Florida, Texas, Louisiana, New Jersey and New York will face the highest price increases, ValuePenguin.com finds

from ValuePenguin.com Apr 22, 2021

NEW YORK, April 22, 2021 -- The Federal Emergency Management Agency (FEMA) is taking steps to more effectively assess the flood risk that homeowners face. The agency's National Flood Insurance Program (NFIP) recently released new flood insurance rating procedures that are meant to equitably distribute the cost of insurance for potential flood damage based on the risk a property faces.

A new ValuePenguin.com analysis of FEMA's Risk Rating 2.0 — the new methodology that goes into effect on October 1st— found that more than 3.8 million homeowners will see rates increase, but 1.2 million homeowners will actually see their flood insurance premiums decrease.

Key Findings:

Under FEMA's Risk Rating 2.0 system, the cost of flood insurance will increase for 3,846,702 homeowners, but the highest price surges will affect only 192,836 of these policyholders — or 4% total. There will also be immediate cost reductions for 1.2 million or 23% of flood insurance policies.

The largest proportion of homeowners in Hawaii (87%), Texas (86%), Mississippi (84%), West Virginia (83%), Florida (80%) and Louisiana (80%) will see their flood insurance premiums increase under FEMA's new ratings. More than 10,000 homeowners each in Florida, Texas, Louisiana, New Jersey and New York will face the highest price increases.

More than 8 in 10 existing flood insurance policies in Alaska will see immediate decreases because of Risk Rating 2.0. At least half of the policies in the District of Columbia, Maryland, Michigan and Utah will have lower rates.

FEMA's rate changes promise to set right the problem of policyholders paying rates that don't reflect the true risk they face, but rate increases will be moderate. Despite the fact that many homeowners will need to pay more for flood insurance after Risk Rating 2.0 goes into effect, existing limits on annual rate increases will still be in effect. This means that most homes won't experience year-over-year price hikes that are more than 18%.

According to Andrew Hurst, Insurance Data analyst at ValuePenguin.com, "Homeowners should be aware of the limitations of a federally backed flood insurance policy, which come with a 30-day waiting period before taking effect. Between the time you purchase a policy and the date when that policy becomes effective, you effectively have no coverage from flood damage". He adds, "With Hurricane season nearly upon us, homeowners need to make sure they have enough flood insurance, because you can't buy flood insurance right before a storm hits. You can consider private flood insurance, which can be cheaper, allows for more customization and has a shorter waiting period (10-14 days)."

ValuePenguin consolidated the information published by the Federal Emergency Management Agency (FEMA) National Flood Insurance Program (NFIP) regarding the number of policies in effect and those scheduled to see a decrease or increase after the implementation of Risk Rating 2.0. The analysis includes rate changes for each of the 50 states and the District of Columbia.

To view the full report, visit: LINK

State

Hawaii

Total policies in effect

61,400

Percentage with decrease

13%

Percentage with any increase

87%

Percentage with an increase greater than $20 a month

4%
Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT