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I’m an insurance agent based in St. Paul and serving the Twin Cities metro and surrounding areas. I am focused on making sure families and individuals are safe through difficult times and circumstances.

Flooding is one of those times, and it’s become the costliest and most frequent natural disaster facing Minnesotans. Unfortunately, unlike most insurance, flood insurance through the National Flood Insurance Program (NFIP) has not evolved as flooding has worsened in recent years.

To address this, FEMA has rolled out a new rating methodology, known as Risk Rating 2.0. — a more accurate, transparent and fair way to determine a property’s unique flood risk and prepare policyholders for future flooding. It is an important step to modernize this critical program.

Under Risk Rating 2.0, which began on Oct. 1 for new policyholders and starts April 1 for existing policyholders, nearly 1.2 million NFIP policyholders nationwide are eligible for an immediate decrease in flood insurance premiums.

According to FEMA, over 2,100 single-family homeowners in Minnesota will benefit from decreased premiums under the new rate structure. More than 93% of policyholders across the state will see either a decrease in payments or an increase of less than $10 a month. Absent these changes, under the old system, every NFIP policyholder would see a rate increase this year and many annual increases would continue indefinitely.

This is a smart move that will increase the NFIP’s financial stability, save policyholders money and keep people safer the next time floodwaters rise.

Ian Davy

St. Paul