marshfield-brant-rock-flood-insurance-nfip-risk-rating-rogersgray-rossiOn April 1st, the Federal Emergency Management Agency (FEMA) released its first official communication on the long-awaited overhaul of the National Flood Insurance Program (NFIP)’s rating system. The new pricing methodology, known as Risk Rating 2.0, uses new modeling and updated data to assess more accurately flood risk of individual properties nationwide. Phase 1 of the new program begins on October 1, 2021.

In its announcement, FEMA shared a state-by-state breakdown of Risk Rating 2.0’s impact on flood insurance premiums. Get the latest of Massachusetts’ flood insurance state profile or check out our summary below.


According to FEMA, Massachusetts NFIP flood insurance policy holders can expect the following changes:

  • 39% will see an immediate decrease in flood insurance premiums
  • 49% will see, on average, $0-$10 per month increase
  • 6% will see, on average, $10-$20 per month increase
  • 6% will see, on average, greater than $20 per month increase

The FEMA bulletin outlines the coming timeline for changes as follows:

  • April-September 2021: FEMA collaborates with and continues to periodically share draft guidance documents with NFIP insurers regarding RR 2.0 program changes.
  • August 1, 2021: NFIP insurers may begin quoting for policies with effective dates on or after October 1, 2021.
  • September 1, 2021: FEMA releases final guidance documents for NFIP insurers detailing upcoming RR 2.0 program changes.
  • October 1, 2021: All new business policies effective on or after this date must be issued under RR 2.0. Existing policies renewing with effective dates between October 1, 2021 and March 31,2022 can renew under the legacy rating plan or renew their policy under RR 2.0.
  • April 1, 2022: All existing policies with renewal dates on or after April 1, 2022 will be renewed under RR 2.0.

FEMA explained the creative process of Risk Rating 2.0 in its press release noting: “In developing the new rates, FEMA coordinated with subject matter experts from the U.S. Army Corps of Engineers, U.S. Geological Survey and the National Oceanic and Atmospheric Administration along with experts from across the insurance and actuarial industries”

Notably, key features that are NOT changing under Risk Rating 2.0:

➲ FEMA will continue to offer premium discounts for Pre-FIRM subsidized, newly mapped and continuous coverage grandfathering.
➲ Policyholders will still be able to transfer their NFIP policy discount to a new owner by assigning their flood insurance policy when their property changes ownership.
➲ Discounts to policyholders in communities who participate in Community Rating System will continue.

There will be much more information to come, so please stay tuned as we continue to monitor new developments.


Risk Rating 2.0 Data

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Mike Redfield

Mike Redfield

Vice President | PRIVATE RISK

Mike Redfield is Vice President – Private Risk Advisor with RogersGray. From his previous professional experience he has worked with clients to provide insurance solutions for those planning for, and in retirement.

Insurance is confusing to many, Mike specializes in making it as painless as possible while putting together plans for his clients and presenting in an understandable way. Mike grew up in Yarmouth and now resides in Plymouth with his wife, children and their dog Mokie. You can connect with Mike on LinkedIn or by email.