What you should know about flood insurance

Flooded Homes
  • Homeowners are 85 percent more likely to use a flood insurance policy during the span of a 30-year mortgage rather than a homeowner’s policy.
  • More than 20 percent of NFIP claims are submitted by people who own property outside of high-risk areas.
  • If you live in an area with a high risk of flooding, you have a 25 percent chance of your home being flooded over a 30-year mortgage. In moderate- to low-risk zones, the chance of flooding is lower but still present.
    Source: National Flood Insurance Program figures for U.S.

Risk Rating 2.0: Equity in Action

risk rating

Here is what you need to know about NFIP’s Risk Rating 2.0: Equity in Action, a more modern, individualized and equitable way to protect the life you’ve built in today’s everchanging environment.

FEMA’s National Flood Insurance Program provides coverage for residential properties, personal property, and nonresidential properties — helping Americans protect the lives they’ve built from the financial impacts of flooding. NFIP flood insurance premiums are based on the risk rating of the building to be insured: the higher the risk, the higher the flood insurance premium.

What is Risk Rating 2.0: Equity in Action?

Risk Rating 2.0: Equity in Action is FEMA’s new, individualized approach to risk assessment, built on years of investment in flood hazard information. By using new data, new flooding models, and new technology, Risk Rating 2.0: Equity in Action can assess many factors for individual properties, including:

  • Frequency of flooding
  • Multiple flood types — river overflow, storm surge, coastal erosion, and heavy rainfall
  • Proximity to flood sources
  • Building characteristics, such as First Floor Height and the cost to rebuild

Why is NFIP changing its risk rating system?

Prior to Risk Rating 2.0: Equity in Action, the NFIP rating methodology primarily considered flood zones and elevations, and had not been updated in 50 years. This caused disparities that resulted in individuals paying more than their fair share in flood insurance premiums. With Risk Rating 2.0: Equity in Action, FEMA now utilizes the latest in technology that allows it to:

  • Calculate rates that are equitable for all policyholders, based on the values of their buildings and individual properties’ flood risks.
  • Provide building owners and renters with more specific and accurate information on flood risk, which will help them make well-informed decisions on purchasing flood insurance and taking steps to mitigate flood risk.
  • Improve community resilience and help disaster survivors recover faster after floods — America’s number one natural disaster — which are projected to get worse across the country due to climate change.
  • Ensure rate increases and decreases accurately reflect individual flood risk. The rating is specific to the building (rather than a blanket rate based on a flood map).

To learn more about Risk Rating 2.0, view https://agents.floodsmart.gov/agents-guide/risk-rating

Flooding is generally the most common and costliest type of disaster Missouri experiences, but standard homeowner’s insurance does not cover flooding, so it’s important to have protection from damage associated with flooding. 

SEMA’s Floodplain Management Section administers the National Flood Insurance Program (NFIP) for the state of Missouri.  NFIP offers flood insurance to homeowners, renters and business owners if their community participates in the program, providing more than $4 billion in flood insurance coverage for Missouri homes and business annually. Participating communities agree to adopt and enforce floodplain management ordinances that meet or exceed FEMA requirements.

The National Flood Insurance Program was created by Congress in 1968 to provide a means for property owners to protect themselves financially from flood events. The program is administered by the Federal Emergency Management Agency.

The NFIP offers flood insurance to homeowners, renters and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce floodplain management ordinances that meet or exceed FEMA requirements.

Missouri communities that have recently enrolled in the NFIP

  • Diamond
  • Lanagan
  • Linneus
  • Bethel
  • Lincoln
  • Pickering
  • Dennis Acres
  • Polo

How NFIP Insurance Policies Helped Missouri Homeowners in Historic 2017 Flooding

  • More than $64 million was paid to policyholders, with the paid out claims averaging more than $63,500.00 per policy.
  • $19 million was paid to policyholders before the federal disaster was declared (Flood insurance pays even when there is no disaster declaration.)
  • 26 percent of NFIP claims filed were NOT in a Special Flood Hazard Area.


thumbnail image of 2017-18 Quick Guide

Quick Guide for Floodplain Management


thumbnail image of After the Flood Quick Guide

After the Flood Quick Guide