Changes in Flood Insurance Rates for Mississippi Homeowners – Picayune Item

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JACKSON, miss. – More than 63,000 Mississippi homeowners currently have flood insurance under the National Flood Insurance Program (NFIP). An update to the program called Risk Rating 2.0 will change the calculation of the cost of flood insurance and determine the risk of floods. The Federal Emergency Management Agency (FEMA) touted the transformation as “fairness in action,” with policyholders no longer paying more than their share of flood insurance premiums. These rates are set by the federal government.

“I agree with FEMA’s assessment of the update,” said Insurance Commissioner Mike Cheney. “The NFIP has historically suffered from funding problems and needed a long-term solution to provide flood insurance for years to come. A risk rating of 2.0 ensures that policyholders will be protected from future floods. ”

In Mississippi, 96% of current policyholders’ premiums will either increase or decrease by $ 20 or less per month. More than 10,000 policyholders will see an immediate reduction in premiums. Increase or decrease will depend on the flooded area of ​​the property, the year of construction, the way the property is used and the difference in height. Click here for more information on premiums.

“While these changes do result in higher premiums for some policyholders, there will be savings for others,” Cheney said. “There are also private flood insurance companies, which is good because they provide policyholders with options. Homeowners should also consider improving their homes to make them safer and less prone to flooding. ”

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