How FEMA’s new flood insurance rules affect Nebraska, Iowa
(WOWT) - The Federal Emergency Management Agency’s new flood insurance program, Risk Rating 2.0, that will cause a majority of Nebraska and Iowa homeowners to see an uptick in the cost of flood insurance policies.
FEMA’s new methodology looks specifically at each property to assess how likely flooding is.
According to FEMA’s website, 43% of Nebraskans and 37% of Iowans with flood insurance policies would see an immediate decrease; 5% are likely to see increases of $10-$20 per month.
Despite devastating flooding more than two and half years ago, the people of Pacific Junction are determined to build back their town. The city clerk says the cost of flood insurance plays a big role.
“It’s very important that we keep the rates down because that’s what’s holding people back,” said City Clerk Korrena Nepple.
But FEMA says the new program is based on better data and helps make sure people are paying what they should.
“The long-term goal of Risk Rating 2.0 is to provide property owners with an accurate picture of their flood risk,” said David Maurstad, FEMA.
The new insurance calculation takes into consideration the location of each property rather than putting the price up across the board.
“I think we’re around 600 a year for flood insurance,” said Mayor Andy Young.
“It does add up, especially as you get older, and a lot of our population is older, retired, living on fixed incomes, so it makes a difference, it makes a difference,” said Nepple.
As FEMA’s floodplain mapping also loom, there’s another piece in a complicated comeback puzzle.
“You don’t know what it’s going to do to your town, what you’re going to see, is there going to be development, are we dying,” said Nepple.
Comparatively, 80% percent of policies in flood-prone Louisiana will see monthly price increases, though 70% of those will be less than $10 per month.
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