CNBC is reporting that, starting October 1, FEMA will be factoring in the impact & risks of so-called climate change as part of a complete overhaul to make insurance pricing more accurately reflect each property’s unique flood risk. Citing data from a United Nations report, CNBC says hurricanes are becoming stronger, rainfall heavier and flood risk higher.
“No question that this is the most substantive change to the program going back to 1968,” said David Maurstad, deputy associate administrator for federal insurance and mitigation and senior executive of the flood insurance program.
“What we found out was that many folks with lower-value homes were paying more than they should, and those that had higher-value homes were paying less than they should. And we have a responsibility to make sure that we have actuarily sound, fair, and equitable rates. And so that’s what’s driving the change.”