Risk Rating 2.0 – What Does This Mean For You?

Risk Rating 2.0 – What Does This Mean For You?

What is Risk Rating 2.0 (RR 2.0)?

FEMA is updating the National Flood Insurance Program’s (NFIP) risk rating methodology through a new pricing structure called Risk Rating 2.0 (RR 2.0). The new rating methodology will leverage industry best practices and cutting-edge technology to enable FEMA to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk.

  1. Is an Elevation Certificate (EC) going to be required with RR 2.0 rated applications or policies?
    • No, EC’s are no longer required but they are optional. Agents will have the opportunity to enter the EC information for a more accurate premium rating
      • If an EC is added, but the EC information leads to a less beneficial premium than the NFIP’s first floor tool, RR 2.0 will not use the EC information for premium calculation
    • Effective October 1, 2021, the measurements from Section E of the EC can be entered for any flood zone

New Business

  • Starting in September, applications with effective dates on or after October 1, 2021, will reflect the new RR 2.0 questions
  • The application will have fewer questions that are easier to answer in many cases
  • The general process for quoting will not change.


  • Policies scheduled to renew between October 1, 2021 and March 31, 2022, will continue to bill with legacy rates/rating 1.0 through March 31, 2022
  • You will have the opportunity to review your policies in your flood processing platform with the option to quote a bill under RR 2.0
  • If RR 2.0 provides a favorable premium, you can convert the bill to RR 2.0 rates in the system. You will be required to fill in additional information in order to re-rate the renewal. If you are able to complete the required information, the renewal bill will automatically generate
  • Upon payment receipt, the policy may flow to underwriting for review if needed; otherwise, the policy will issue as normal
    • Please note, policies on the general properties form will flow to underwriting upon payment to obtain replacement costs documentation

We will provide more information on the process for policies that renew April 1, 2022, and later in the near future.


Updated Declaration Pages

Declaration pages will be updated to reflect the new RR 2.0 changes. See the examples linked below. Hover over the yellow highlighted section in each of the PDFs for notes on changes.

New Policy Declaration Page Example Revised Policy Declaration Page Example Renewal Declaration Page Example

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