Understanding the Newly Mapped Procedure

What’s changing

A client’s property’s flood risk is changing from a moderate- to low-risk flood area (Zone B, C, or X) or Unknown (Zone D) to a high-risk area (Zone A or V).

An image depicting a transition from moderate/low to high risk

What this means for existing or potential clients

For clients that are newly identified to be a high-risk flood area, the NFIP offers a cost-saving option called the Newly Mapped Procedure.

With NFIP's pricing approach, Risk Rating 2.0, Newly Mapped discounts and subsequent rate increases continue. Premiums will continue increasing gradually and within the existing statutory limits set by Congress until reaching the full risk premium.

If the building is sold, the policy can be transferred to the new owners, allowing them to keep the lower-cost rate. Clients must maintain coverage continuously to keep their Newly Mapped rate.

NFIP's Pricing Approach

With NFIP's pricing approach, FEMA now has the capability and tools to address rating disparities by incorporating more flood risk variables like flood frequency, multiple flood types — river overflow, storm surge, coastal erosion, and heavy rainfall — and distance to a water source, as well as property characteristics such as elevation and the cost to rebuild.

This means that although flood mapping data will still be necessary and essential for communities, and Flood Insurance Rate Maps (FIRMs) will continue to be used for mandatory purchase requirements, building code requirements, and floodplain management requirements, flood maps will no longer be the most significant factor in rating premiums.