New FEMA plan changes flood insurance rates impacting policyholders in the Cape Fear Region

CAPE FEAR AREA (WWAY) — FEMA is making changes that will impact flood insurance rates across the country, including the Cape Fear Region, which is no stranger to flooding.

This is the first major change to flood insurance rates set by FEMA since the 1970’S.

Under FEMA’S “Risk Rating 2.0”, around 91% of North Carolina national flood insurance policy holders, will see either a decrease or an increase of no greater than $120 per year.

Former Fema Administrator Craig Fugate said this change was implemented with a goal of providing fairer rates.

“What they found was, in some cases people were paying more than what their risk indicated, other people weren’t paying what their risks were,” said Craig Fugate.

The new FEMA flood rating looks at each individual risk for each home, adjusting the premium rates for homeowners who have made changes to their property to reduce the flooding impact.

“Well they look at how close or what their flood risk is, –is it storm surge, is it river, –you know is it storm water runoff, how much would it cost to replace the home. So, there’s a lot of factors that we’re considered in the old scheme,” said Fugate.

For new policy holders, those who do not currently have a flood insurance policy, the rate changes begin Friday. Those with an existing flood policy through FEMA, will see the rate change in April.

Adrienne Moore,CEO of James E. Moore Insurance Agency in Wilmington, says people on the coast should expect a rate change.

“The majority of premiums in our area are going to go up slightly. There will be a few that go down, and if that’s you, you got lucky,” said Adrienne Moore.

Moore says if your premium increases there is a maximum rate that has been implemented.

“So, even if the new rating program is going into effect calls for a greater increase in that, it will be capped again, –for most policies at 18% and then it will continue to go up until you are at that full premium,” said Moore.

Anyone with a flood insurance policy through FEMA is advised to contact their insurance agent to see how their existing plan will be affected, and FEMA has a dashboard with predicted premium changes according to zip codes.