FEMA to increase flood insurance rates for 62% of Kansas policyholders
TOPEKA, Kan. (WIBW) - The Federal Emergency Management Agency will increase flood insurance rates for 62% of its Kansas policyholders in October.
Home insurance quote website QuoteWizard.com says the Federal Emergency Management Agency will change flood insurance rates nationwide on Oct. 1, 2021. Through a study, QuoteWizard’s team found FEMA’s new rules will cost 62% of Kansas policyholders as much as $100 more per month.
QuoteWizard said FEMA will unveil Risk Rating 2.0, which will transform the National Flood Insurance Program by making available more equitable pricing for flood insurance. The new rating will use five main data points to find a property’s flood risk: Historical flood frequency; Flood type - river, rainfall, coastal surge, coastal erosion; Distance to a water source; Property characteristics - elevation, soil, etc.; and Cost to rebuild.
According to the analysis, the new risk rating will immediately increase the monthly cost for about 4 million policyholders between $10 and $100, while about 1.2 million policyholders will see an immediate rate decrease between $10 and $100 per month. For the most part, it said property owners in lower-value homes and neighborhoods will pay less, while those in higher-value homes and neighborhoods will pay more.
The study shows that 62% of policies in Kansas will increase in price, while 38% will decrease. It said 3% of Kansas policies will increase by $20 or more, 24% will decrease by $20 or more, less than 1% will increase by $60 or more and 14% will decrease by $60 or more. It said 9,565 Kansas policies will be affected.
For more information or to see how the change will affect policyholders in other states, click HERE.
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