What Federal Flood Insurance Changes Mean For CT Homeowners

CONNECTICUT — Changes to the National Flood Insurance Program will result in many Connecticut families saving $1,200 or more per year in premiums. However, many policyholders will see slight premium increases for policies that renew after April 1.

FEMA updated its NFIP risk rating methodology in an attempt to tie rates closer to the actual flood risk and cost of replacement for individual properties. Many policyholders with lower-value homes were paying more than they should have, while owners of higher-value homes were paying less, according to a FEMA analysis. The program provides $1.3 trillion in coverage to 5 million policyholders nationwide.

There are about 35,000 NFIP policies in Connecticut. Premiums decreased for about 12,700 Connecticut policyholders when the first part of the program weet into effect Oct. 1, 2021. About 16,300 policyholders will see an average increase of $0 to $10 per month in premium increases when policies renew after April 1.

More than 4,100 Connecticut policyholders (11.8 percent) will see a monthly premium decrease of at least $100, including nearly 3,100 single-family home policyholders. Noo policyholder would have seen that decrease under the old rating methodology.

The new rating system will result in 84 Connecticut policyholders paying $100 or more in monthly premium increases; only six single-family home policyholders will see that increase. The old rating system would have resulted in nearly 1,300 policyholders experiencing that large increase, 859 of which are single-family homeowners.

FEMA officials worked with experts from the U.S. Army Corps of Engineers, U.S. Geological Survey and the National Oceanic and Atmospheric Administration, as well as insurance industry experts to develop the new methodology.