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“The 2017 Rand Corporation study projected that the elimination of “grandfathering” — which allows currently uninsured homeowners outside the flood zone to buy insurance at a rate reflecting their current, lower level of measured risk before the adoption of new hazard maps — could nearly double the median flood insurance premium, and depress property values by tens of thousands or even hundreds of thousands of dollars.”

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In March, FEMA announced a “Risk Rating 2.0” initiative, to take effect in October 2020 — but the agency described the new policy only in brief, vague terms. The adjusted rating system strives to “close the insurance gap,” and will incorporate granular, lot-by-lot details, which could potentially include the cost of reconstructing the home; the distance from a shoreline or riverbank; differing impacts of different kinds of floods; or the structure’s history of flooding.

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Like the flood hazard maps to come, Risk Rating 2.0 is a black box. All 5 million current policyholders nation-wide will see their rates change under the Risk Rating 2.0 system — but until FEMA releases a more detailed policy description, the precise shape and direction of that change remains a mystery.

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It’s no surprise that changing the system has been contentious and slow going. Rising insurance rates could drastically impact affordability for individual owners, and the housing market as a whole, as insurance-obligated houses become more expensive to own and more difficult to sell.

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Join the discussion at www.facebook.com/groups/stopfemanownj

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Great quotes by Caroline Nagy.

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Read the full story here    https://citylimits.org/2019/09/18/nyc-homeowners-face-huge-unknowns-as-flood-insurance-changes-loom/?fbclid=IwAR22qcksJfABQeQHccT7u3jNahFBQcHvro8pZHg2_dNJtLeNbWy7udHkKVQ

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