Anywhere It Rains, It Can Flood
Flooding can happen almost anywhere, and even a few inches of water can cause major damage. That’s why it’s important to understand how flood insurance works—and what your homeowner’s policy doesn’t cover.
What Is Risk Rating 2.0?
FEMA has modernized how it prices flood insurance through the National Flood Insurance Program (NFIP) with a system called Risk Rating 2.0: Equity in Action. This new approach uses updated data and advanced modeling to provide more accurate and fair premiums based on a property’s specific risk.
- Since October 1, 2021, all new flood insurance policies have been issued using this new methodology.
- As of April 1, 2022, all remaining NFIP policies renewing after that date have transitioned to Risk Rating 2.0.
This change helps ensure policyholders pay rates that better reflect their property’s unique flood risk—whether it’s near a river, coast, or even in a low-risk area.
Why Do I Need Flood Insurance If I Have Homeowner’s Insurance?
It’s a common misunderstanding: standard homeowner’s policies do not cover flood damage caused by rising water.
Here’s what’s typically covered under your home insurance:
- A burst pipe? Yes.
- Water damage from wind-driven rain breaking a window? Yes.
- Flooding from a storm surge, river overflow, or heavy rain? No.
Flood insurance steps in when rising water from natural sources damages your home or belongings. The NFIP defines a flood as:
“A general and temporary condition where two or more acres of normally dry land, or two or more properties, are inundated by water.”
Can Renters or Condo Owners Get Flood Insurance?
Absolutely. You don’t have to own a house to protect yourself from flood damage.
- Renters can purchase coverage for personal belongings.
- Condo unit owners can purchase up to $250,000 in building coverage (in coordination with the condo association’s policy) and up to $100,000 for contents.
Don’t Wait for the Water to Rise.
Contact us today at 800-637-4676 or info@profinsprog.com for a free Flood Insurance quote.
Additional Resources:
FloodSmart | The National Flood Insurance Program
National Flood Insurance Program – Summary of coverage