Congress extended the National Flood Insurance Program to September 2026. But Risk Rating 2.0 is fundamentally changing what homeowners pay. Here's what you need to know.
Flood insurance is in the middle of its biggest transformation in decades. The National Flood Insurance Program (NFIP) — which covers roughly 5 million policies nationwide — has been extended through September 2026, avoiding another lapse that would freeze new policies and renewals. But the bigger story is Risk Rating 2.0, FEMA's overhaul of how flood risk is priced. Some homeowners are seeing dramatic savings. Others are watching their premiums climb by 18% per year with no end in sight. Whether this benefits or hurts you depends on where you live, how your home is built, and whether you take action.
Flood insurance is in the middle of its biggest transformation in decades. The National Flood Insurance Program (NFIP) — which covers roughly 5 million policies nationwide — has been extended through September 2026, avoiding another lapse that would freeze new policies and renewals. But the bigger story is Risk Rating 2.0, FEMA's overhaul of how flood risk is priced. Some homeowners are seeing dramatic savings. Others are watching their premiums climb by 18% per year with no end in sight. Whether this benefits or hurts you depends on where you live, how your home is built, and whether you take action.
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