Tag Archive for: Risk Rating 2.0

MAAPnext Offers Powerful Historical Flood Loss Visualization Tools

By accident, I stumbled across some powerful historical flood loss visualization tools on Harris County Flood Control’s MAAPnext site today. They can help you understand the capricious nature of storms as well as political claims about which neighborhoods flood the most.

About MAAPnext

In 2019, using two FEMA grants and Flood Bond money, Harris County Flood Control District launched its MAAPnext project. MAAP stands for Modeling, Assessment and Awareness. The goal: to use new methodologies and technologies to improve understanding of flood risks throughout Harris County. The project goes far beyond updating Flood Insurance Rate Maps in the wake of recent storms. It also includes:

  • Interactive historical flood loss visualization tools
  • Water surface elevation change grids (maps showing difference between effective and revised floodplains)
  • Flood depth grids (for various flood frequencies including 10%, 4%, 2%, 1% and 0.2% annual chance events)
  • Urban flood maps (street flooding caused by rainfall exceeding storm sewer capacity)
  • Percent annual chance grids (giving you your exact probability of being flooded within a mapped floodplain)
  • 30-Year chance grids (showing your home’s exact chance of flooding within the life of a 30-year mortgage)
  • Water surface elevation grids (showing the water surface elevation in various flood frequencies)

Not all of these maps have been released yet. For instance, MAAPnext/FEMA will release new preliminary flood insurance rate maps for public comment this fall. However, I did find three fascinating interactive maps showing the history of flood losses in Harris County.

Historical Flood Loss Tools

Cumulative Losses since 1978

The first map provides a visual representation of where all flooding claims have occurred throughout the county since 1978. A property’s flood risk can be a influenced by many factors but it’s important to remember that it can flood anywhere in Harris County. The darkest areas have the most cumulative flood losses. The lightest areas have the least.

Total flood losses in various census tracts within Harris County since 1978.

To understand exactly WHERE and WHEN these flood losses happened, you need to go to the next two series of maps.

Historical Inundation Map

The Historical Inundation Map shows the extent of flooding in five different major storms since 2015. These include only streams with gages, not all Harris County channels. Zoom and scroll into an area of interest and then select the storm of interest from the layer menu.

Extent of flooding along the West and East Forks in the Memorial Day 2016 flood.

You can toggle layers rapidly to see how floods compared to each other.

Flood-Loss History by Event

The map above shows the spread of flood waters in various events. However, to see the relative damage in census tracts, you need to go to the map called “Flood Loss History by Event.” Again, you’ll need to toggle layers to select the event of interest. The darker the colors, the more damage.

Tax Day 2016 Storm Damage
Selecting the Tax Day 2016 layer shows that most damage from that storm occurred in NW Harris County.
Hurricane Harvey 2017 Damage
Selecting the Harvey layer shows that that storm affected the entire county with some watersheds experiencing more losses than others.
Imelda 2019 Damage
Distribution of damage in Harris County from Tropical Storm Imelda

For More Interactive Exploration…

The four maps above only scratch the surface of what you can find on the MAAPnext site. To explore the distribution of damage in various storms, visit the page called Understanding Your Flood Risk.

Media accounts of major storms might lead you to believe that major storms affect all parts of the county equally. But they don’t. Who floods depends on upstream rainfall totals, dam releases, proximity to floodplains, development regulations, elevation above the flood plain and more.

The most interesting aspect of MAAPnext is that it will eventually incorporate all of these factors and give you an individual risk rating for your property or one that you are considering buying.

If knowledge is power, this is power cubed, because it let’s you look at flood risk in multiple dimensions.

Be Patient

I can’t wait until the project is fully finished. Check back often and click around this site as new features seem to be bolted on periodically. The bolted-on comment relates to my only complaint. All information (and there’s a lot of it) is grouped under five pages in ways that are rarely intuitive and often invisible from the highest levels. For instance, to get to the historical flood loss maps, you have to:

  • Click on the home page
  • Click on a link embedded in one of the visuals called “Flooding is Our #1 Disaster.”
  • It will take you to a page called (strangely enough) “Understand Your Flood Risk.”
  • Scroll down past 7 other topics to the bottom of page to find the interactive maps.

Presumably, helping people understand their flood risk is the most important objective of this site, but the page by that name appears nowhere in navigation. That said, have fun exploring. You’ll find many other hidden gems on this site.

And remember that all flood insurance policies renewing on or after April 1, 2022, will be subject to FEMA’s new Risk Rating 2.0 methodology.

Posted by Bob Rehak on 3/12/2022

1656 Days since Hurricane Harvey

New Interactive Maps Show Flood Insurance Premium Changes With Risk Rating 2.0

Starting Oct. 1, FEMA’s new Risk Rating 2.0 will fundamentally change the way FEMA rates a property’s flood risk and prices insurance premiums. But to what extent will that affect premium changes in your area?

To help answer that question, the American Society of Flood Plain Managers (ASFPM) and The Pew Charitable Trusts recently unveiled new interactive maps. They show exactly where flood insurance premiums will decrease, increase, or remain the same — and by how much.

Risk Rating 2.0 incorporates more flood risk data to more accurately reflect a property’s individual flood risk. Types of data include:

  • Frequency and types of flooding (river overflow, storm surge, coastal erosion, heavy rainfall)
  • Distance to a water source
  • Property characteristics ( elevation, cost to rebuild).

Visual Tools Make Data More Accessible

ASFPM developed the interactive maps to help local leaders better communicate what’s occurring in their communities, but it’s also easy enough for an average person to grasp. 

“There is a fair amount of information available on Risk Rating 2.0. But getting that data out of spreadsheets is challenging. This new tool should help,” said Chad Berginnis, ASFPM’s executive director.

“Floods are this nation’s most frequent and costly natural disasters. And the trends are worsening. It’s important that people know their risk and buy flood insurance to help protect their homes and businesses. It’s equally important that communities take steps to minimize flood risk,” said Berginnis.

ASFPM used datasets from FEMA’s NFIP policyholder information to create the easy-to-use data visualization tool. The data are broken down across four categories. They range from a decrease in premiums to an increase of $20/month or more. A color-coded scale indicates the percentage of policyholders in each category.

Interactive Maps Show Premium Changes By State, Zip

The first interactive map at no.floods.org/rr2changes breaks down projected premium changes for each state and territory.

There are also two interactive maps by zip code:

The data compares a snapshot of policyholder premiums from May 31, 2020 with Risk Rating 2.0 premiums, applying statutory increase limits.

The comparison does not attempt to estimate premium increases that might have occurred without the new Risk Rating 2.0 pricing methodology.

This data won’t tell you what will happen to your premiums. But it will give you a rough idea of the percentages of people in your zip code who can expect increases within certain pricing brackets. The brackets include:

  • Decreases
  • Increases in the $0 to $10/month range
  • Increases in the $10 to $20/month range
  • Increases in the $20+/month range

Zip Codes in Lake Houston Area

The maps for local zip codes showed that the vast majority of all local policies in the Lake Houston area will increase between $0 and $10 per month.

The vast majority of policies in the upper Lake Houston area will see monthly increases of less than $10. This includes homes and businesses.

Clicking on the other tabs at the bottom of the map will show you the percentage of policies that fall into other ranges.

Very few people in these zip codes will see decreases. Almost everyone else will see increases greater than $10 or $20/month.

Looking only at increases for Single-Family-Home policies, about 90% of policies should see a monthly increase in the $0-10 range.

The maps contain far more detail than shown above. When you click on a zip code, areas surrounding the map and within the black pop-up box, display the data in tabular and graphic formats. Make sure you scroll through the data in the black pop-up box. It breaks the highest and lowest categories down into far more brackets. For instance, the $20+ category actually includes brackets up to $90-$100/per month.

Individual policyholders should contact their insurance agent for a personalized quote.

Use this data for comparison purposes to make sure you’re not overpaying. But remember, variations such as your proximity to water, first floor elevation, and the replacement value of your home could skew results from the average in your zip code.

The largest increases in the Houston area will be in Pasadena’s 77507 zip code. More that 50% of the policy holders there will see a $20+/month increase.

First Pricing Update in 40 Years

This is the program’s first pricing update in more than 40 years. 

“Under Risk Rating 2.0, FEMA is fixing longstanding inequities in the NFIP’s flood insurance pricing and establishing a system that is better equipped for the reality of frequent flooding caused by climate change,” said David Maurstad, senior executive of the National Flood Insurance Program. “Risk Rating 2.0 is not just a minor improvement, but a transformational leap forward that enables FEMA to set rates that are fairer and ensures rate increases and decreases are both equitable.”

According to FEMA, only 4% of policyholders nationwide are expected to see substantive increases. In a national rate analysis of current policyholders, FEMA has said:

  • 23% will see premium decreases
  • 66% will see, on average, premium increases of $0-$10/month (which is around what the average is now)
  • 7% will see, on average, premium increases of $10-$20/month
  • 4% will see, on average, premium increases of $20 or more per month. 


Background on Risk Rating 2.0 

Risk Rating 2.0 will deliver rates that are actuarially sound, equitable, easier to understand, and better reflect an individual property’s unique flood risk.

By communicating flood risk more clearly, the new methodology should help policyholders make more informed decisions on the purchase of adequate insurance and on mitigation actions to protect against flooding. FEMA is implementing the program in two phases:  

  • Phase I – New policies beginning Oct. 1, 2021 are subject to the new pricing methodology. Also beginning October 1, existing policyholders are able to take advantage of immediate decreases in their premiums when the policy renews. 
  • Phase II – Renewals of the remaining existing flood insurance policies will be written to the new plan starting April 1, 2022, allowing policyholders an additional six months to prepare for any adjustments.

Posted by Bob Rehak on 9/26/21 based on a press release from ASFPM provided by Diane Cooper

1489 Days since Hurricane Harvey


Progress Report on New Flood Maps and Flood-Insurance-Risk Ratings

On June 29, 2021, Harris County Flood Control District (HCFCD) gave Commissioners an update on the progress of new flood maps and flood-insurance-risk ratings. The flood-map changes could become effective as early as late 2023. FEMA’s new Risk Rating 2.0 system for flood-insurance pricing will be phased in during the next few years. See details below.

MAAPnext About Half Complete

MAAPnext is Harris County’s Modeling, Assessment and Awareness Project. The purpose: to develop the next generation of flood maps and tools. It will provide a better assessment of flood risks for individual properties, and make the nature of those risks easier for property owners to understand.

One of the significant changes: the new maps will capture different types of flooding, such as street flooding. This is currently the biggest missing piece of the flood-risk rating picture, according to the MAAPnext project team.

The new maps will also come with individual property reports that estimate flood depth, water-surface elevations, annual-chance of flooding grids, and 30-year chance of flooding grids. That last will estimate your chance of flooding at least once during a 30-year mortgage. The flood map grids will also be more detailed. They will provide estimates down to the 3 ft X 3 ft level.

FEMA and Harris County expect to have:

  • Draft flood-risk maps and associated data available for public review by the end of this year.
  • Preliminary Flood Insurance Rate Maps (FIRMs) for release by next summer.
  • Public meetings to review and explain the FIRMs to officials and residents during the second half of next year.

The earliest likely date that the new rate maps could become effective: late 2023.

Changes to flood-insurance premiums as a result of map changes could only happen after the new maps become effective.

Understanding FEMA’s Risk Rating 2.0

Risk Rating 2.0 is a massive FEMA effort to put the National Flood Insurance Program (NFIP) on a sound actuarial footing.

FEMA is updating the National Flood Insurance Program‘s (NFIP) risk rating methodology through the implementation of a new pricing methodology called Risk Rating 2.0. The methodology leverages industry best practices and cutting-edge technology to enable FEMA to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk.

More Risk Factors Considered

Elevations, flood-hazard zones, and rating tables will no longer be the only metrics used in calculating the flood-insurance premium for a property. For example, premiums will be distributed across all policyholders based on home values and a property’s unique flood risk. FEMA will also consider flood frequency, multiple flood types—river overflow, storm surge, coastal erosion and heavy rainfall—and distance to a water source along with property characteristics such as elevation and the cost to rebuild.

More Equitable Rates

Currently, many policyholders with lower-value homes are paying more than they should and policyholders with higher-value homes are paying less than they should.

That said, FEMA expects 87% of single-family homes to see a flood-insurance-premium increase of about $120 per year. Another 4% could see an increase of about $121 to $360 per year. Finally, 9% could see a decrease of up to $1,200 per year.

Source: FEMA Fact Sheet – County-Level Premium Change Analysis reproduced in HCFCD document

Phased Implementation

Beginning October 1 this year:

  • New policy holders will be subject to the new rates.
  • Current policy holders eligible for renewal can take advantage of premium decreases.

Starting in April 2022:

  • Existing policy holders who expect an increase with the new method could renew under Risk Rating 2.0, but will have an option to keep their current policies if cheaper for up to two years.
  • All remaining policies renewing on or after April 1, 2022, will be subject to the new rating methodology.  

Contact your flood insurance agent to clarify all timing, rate and discount questions.

How Does MAAPnext Factor into Risk Rating 2.0?

Harris County Flood Control District in partnership with FEMA lead the MAAPnext effort to revise flood insurance rate maps. FEMA alone leads the Risk Rating 2.0 effort to calculate new flood insurance rates. The maps will help calculate new premiums.

For more information, visit the MAAPnext website or the Risk Rating 2.0 section of FEMA’s.

Posted by Bob Rehak on July 4, 2021 based on information from HCFCD and FEMA

1405 Days since Hurricane Harvey

FEMA Reforming Flood Insurance Risk, Rate Structure

Since the National Flood Insurance Plan’s (NFIP) inception in 1968, additional legislation has been enacted to strengthen the program, ensure its fiscal soundness, create better maps, and tie rates closer to risk. Next year, FEMA will transform the NFIP with something called Risk Rating 2.0, a major change.

FEMA says that with Risk Rating 2.0, NFIP is leveraging industry best practices and current technology to deliver rates that are fairer, easier to understand, and better reflect a property’s unique flood risk.

That last part is code for “we lost a lot of money.”

Unsustainable NFIP Losses

NFIP continues to pay claims in excess of revenues, and borrows increasingly from the U.S. Treasury.

Last October, Michael D. Berman wrote an article titled “Flood Risk and Structural Adaptation of markets: An Outline for Action” in the Federal Reserve Board’s Community Development Innovation Review. In it, he says, “On September 22, 2017, after borrowing $5.825 billion to fund claims from Hurricanes Harvey, Irma and Maria, the NFIP had reached its maximum U.S. Treasury borrowing authority of $30.425 billion in program debt. On October 26, 2017, Congress cancelled $16 billion of NFIP debt—the first time in the history of the NFIP that has occurred. Then on November 9, 2017, the NFIP borrowed another $6.1 billion to fund additional 2017 losses, including additional losses from Hurricanes Harvey, Irma and Maria.”

Rating Flood Risk at Property Level

Berman claims, “The NFIP is clearly not properly pricing flood risk, nor is it adequately influencing prudent behavior by property owners and municipalities to sufficiently reduce or otherwise mitigate this risk…This new rating system, known as Risk Rating 2.0, is expected to include repricing of premiums based on flood risk at the property level.”

What Risk Rating 2.0 Involves

FEMA says its current risk-rating methodology has not fundamentally changed since the 1970s. It is now heavily dependent on the 1-percent-annual-chance-event (100-year floodplain).

Risk Rating 2.0 will incorporate a broader range of flood frequencies, new mapping data, and new technologies, more individual rating characteristics, such as: 

• Distance to the coast or another flooding source;
• Different types of flood risk; and
• The cost to rebuild a home.

By reflecting the cost to rebuild, the new rating plan will also aim to deliver fairer rates for owners of lower-value homes.

Rates that Promote Mitigation Efforts

FEMA also plans to offer mitigation credits to help incentivize risk-reduction efforts and reduce the cost of future flood events. Risk Rating 2.0 will initially provide credits for three mitigation actions:

  • Installing flood openings; 
  • Elevating onto posts, piles, and piers; and
  • Elevating machinery and equipment above the lowest floor.

FEMA is not yet saying how many premiums will increase or decrease, or by how much. Two things ARE clear though.

6:1 Payback on Flood Mitigation Investments

First, the old system is broken and unsustainable. Flood maps were outdated and based on data decades old in many cases. They contained many unmapped areas and the mapped areas were strongly influenced by local politicians and developers. Maps also did not reflect the effects of upstream development or more intense, frequent storms.

Second, the new system has a chance to incentivize risk-reduction. The old system encouraged people and communities to rebuild things the way they were after a disaster. We need a new system that encourages more prudent behavior.

FEMA cites a recent study by the National Institute of Building Sciences. Looking back over 23 years of data, the study found that for every dollar that the federal government invests in flood hazard mitigation, taxpayers save an average of six dollars of future disaster recovery spending.

Rebuild to Fail or Rebuild to Adapt?

The current federal flood insurance program promotes rebuilding in flood prone areas. Hopefully, the new system will promote adaptation to help mitigate increased risk.

Flood insurance rates that better reflect risk may promote more prudent behavior by developers, lending institutions, property owners, buyers, and real estate agents who will all “follow the money.”

For More Information

For more information, see:

Risk Rating 2.0 FAQs

Federal Reserve Board Community Development Innovation Review

Cheaper Flood Insurance: Five Ways to Lower the Cost of Your Flood Insurance Premium

NFIP Community Rating System: A Local Official’s Guide to Saving Lives, Preventing Property Damage, and Reducing the Cost of Flood Insurance

FEMA Discussion of Property Insurance Reform

FEMA Discussion about Reducing Risks and Rates

National Institute of Building Sciences 2019 Report on Mitigation

Posted by Bob Rehak on 4/2/2020

977 Days since Hurricane Harvey