When High-Risk Becomes Higher, Offer Cost-Savings

What’s changing

A client’s flood risk is changing from a high-risk area (Zone A) to higher-risk area (Zone V) or the Base Flood Elevation (BFE) is increasing.

An image depicting a transition from high risk to higher risk

Under NFIP's pricing approach, Risk Rating 2.0, existing policies move toward their full risk rates based on statutory glidepaths.

Agent talking points

Your building is now at an even higher risk of flooding – renew or purchase flood insurance before the maps update to stay protected and save money.
Flood insurance costs are higher for higher-risk areas. But, there is a way to save money.
If you purchase or renew coverage before the map update takes place, you’ll secure a “grandfathered” rating, locking in rates based on your current lower-risk zone or BFE.
You should also remember to renew your policy annually to stay protected and keep your lower rates.
Flood insurance is required if you have a mortgage from a federally regulated or insured lender.
Even if you don’t have a loan, you are strongly encouraged to purchase a policy. There is at least a 1 in 4 chance of flooding over the life of a 30-year loan in high-risk areas.