Industry News

There are reports that the Biden administration is planning to bifurcate the launch of a sweeping revamp of flood insurance rates that was set to take full effect this year, amid concern about how the effort would affect millions of homeowners, sources familiar with the matter told POLITICO Pro. FEMA runs the National Flood Insurance Program (NFIP).

The publication reported that new rates under FEMA’s Risk Rating 2.0 initiative were expected to take full effect on Oct. 1. But FEMA now plans to split up the launch so that the new rates will only take effect for new flood insurance policies on Oct. 1, while rates for renewing policies will take effect on  April 1, 2022, according to sources briefed on the agency’s plans. Agents need “sufficient time to educate policyholders who could be affected by the changes and currently seem to be unaware of them,” said Jon Gentile, vice president of government relations for PIA.