One Year of Risk Rating 2.0: Equity in Action: An Overview

October 1st, 2022 marks the first anniversary of Risk Rating 2.0: Equity in Action, the National Flood Insurance Program’s (NFIP) official way of rating and pricing flood risk, and we wanted to share the successes of the past year with you.

When Phase 1 of implementation kicked off last October, the NFIP began selling new policies under Risk Rating 2.0: Equity in Action and started renewing policies for those receiving premium decreases for the first time in the over-50-year history of the program. We successfully rolled out Phase 2 of Risk Rating 2.0: Equity in Action on April 1st, 2021, and all policies are now being written under this pricing plan. 

The NFIP’s new pricing system makes flood insurance policies more personalized, equitable, modern, and adaptable. Gone are the days of lower-value homes with minimal to moderate flood risk subsidizing higher-value homes with some of the highest flood risk in the country. We are now setting rates that are equitable for policyholders from coast to coast, while ensuring rate increases and decreases are fair and based on flood risk.

Since October 1st, 2021, over 2.5 million new and existing policies have been written. Most importantly, with Risk Rating 2.0: Equity in Action, more people across the country know their true flood risk. 

For guides, videos, FAQs, and other helpful tools, visit FloodSmart.gov.