New changes coming to policyholders in South Dakota with flood insurance
RAPID CITY, S.D. – If you have flood insurance, there’s a good chance your premium will be going up. An updated Risk Rating Program from FEMA goes into effect for policyholders nationwide on April 1.
“The zoning is going to tell you what you can and can’t do as far as what type of building. The flood plain is going to tell you what that building has to be. The ordinance is going to tell you that,” Project Engineer for Rapid City Mary Bosworth said.
Most policy-holders are expected to see about a $10 increase in their monthly premium.
In the past, risk-rating policies were determined in a “one size fits all” way. The new Risk Rating 2.0 system will personalize plans, taking things such as location into account.
“Each particular property is viewed more independently and more precisely for what their risk exposure would be for the program,” Executive Vice President for the Independent Insurance Agents of South Dakota Mike Chrysler said. “And I think for taxpayers or for participants in the program, that’s kind of what you want. Is that, from an insurance perspective, the more accurately you can price the risk exposure for something, the more effective the program is going to be.”
April 1 marks the second phase of the Risk Rating 2.0 rollout. The first phase happened last October for new policyholders.