Flood zone building rules mandated by individual states or local municipalities, such as Freeboard, or NJ’s Inland Flood Protection Rule, can affect flood insurance policy rates.

If there’s one thing homeowners and real estate professionals need to understand about the new Risk Rating 2.0 pricing methodology for calculating flood insurance it’s that flood insurance requirements and flood insurance rates are two separate things, and RR2.0 affects rating, not requirement.

Risk Rating 2.0 is set to go into effect on October 1, 2021 for new flood insurance policyholders and April 1, 2022, for renewal of existing policies, making a direct impact on flood insurance premiums and causing those involved in real estate transactions to have inevitable concerns and questions.

From our perspective, it’s important that real estate agents, buyers, sellers, and current homeowners understand the difference between requirement and rate, and know that RR2.0 is only a change to the…