FEMA has introduced a new program for flood insurance which may impact your premiums.
The new rates take effect Oct. 1 for brand new policies, but for those that renew an old policy before April 1, rates will remain the same for one more year.
The rating system replaces the one size fits all approach, which simply rated flood zones as high risk and low risk to determine the premiums.
The new rating system will determine rates based on latitude, longitude and elevation.
Those closer to water will pay higher premiums.
Insurance agents such as Justin Thomas from Kramer Agency say there are options out there for those looking to save.
“You can look at higher deductable options to keep that cost down. Sure you will pay more out of pocket if it does flood, but in the several decades consecutively, hopefully, that we don’t have a flood, you can save money on your premiums,” said Thomas.
Lenders will still utilize the high-risk versus low-risk system, but will not require flood insurance if the home is considered to be in a low-risk zone.