Would your office benefit from a flood insurance discussion? Contact This email address is being protected from spambots. You need JavaScript enabled to view it. at (504) 274-0705 to schedule a presentation at your next sales meeting.

Flood Insurance Rate Changes

Coming October 1

September 30 Updates

  • National Flood Insurance Program (NFIP) has been extended to December 3.
  • Risk Rating 2.0 is starting October 1. Legislation is pending to delay the implementation, and NOMAR will update you if it progresses. Key takeaways for Risk Rating 2.0:
    • Encourage buyers to assume existing flood policies when available.
    • Encourage owners with existing flood policies to maintain them as much as possible.
    • Seek quotes from private flood insurance providers in addition to NFIP.

What REALTORS® Should Know About Risk Rating 2.0

Risk Rating 2.0 is scheduled to take effect on October 1. This new rating structure for flood insurance policies uses different methods of assessing risk to bring properties closer to the true risk rate for their premiums.

Many agents have reached out to us about clients getting flood quotes for post-October 1 closings that are not what they anticipated, either higher or lower. Here’s what you need to know to help your clients understand the changes:

New Policies

If there is no flood insurance policy currently in place on the property:

  • It will be subject to the new rating methodology and full risk premium beginning October 1.

Existing Policies

If the current owner has an active flood insurance policy:

  • It will be subject to the new rating methodology beginning with the next renewal after April 1, 2022.
  • Under 2014 federal law, most premiums cannot legally increase more than 18% per year. Policy renewals will see up to an 18% annual increase until they reach the full risk rate.
  • New buyers can still assume a seller’s existing flood policy. Doing so will allow them to take advantage of the cap on annual premium increases.

Additional Resources


Questions on NFIP or Risk Rating 2.0? Contact NOMAR Government Affairs at (504) 885-3200 or email This email address is being protected from spambots. You need JavaScript enabled to view it.


New Orleans Metropolitan Association of REALTORS®


Metairie Office
3645 N I-10 Service Rd W
Metairie, LA 70002
Ph: (504) 885-3200
Mon - Fri, 8:30AM - 5:00PM

Mandeville Office
4350 Hwy 22, Suite J
Mandeville, LA 70471
Ph: (985) 882-8521
Mon - Fri, 9:30AM - 3:00PM


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