The National Flood Insurance Program (NFIP) sets flood premiums based on a rating methodology called Risk Rating 2.0 “Equity in Action” (RR2.0).

RR2.0 considers specific characteristics of a building – where the building is located, the type of construction and the building’s use. Understanding these characteristics helps to identify the building’s unique flood risk and associated premium. What is not known is the weight that each of the characteristics bear on the rate determination.

FEMA no longer requires an Elevation Certificate to rate a flood insurance policy under RR 2.0. However, most premiums will be reduced if your agent submits an accurate elevation certificate.

Despite numerous requests from Members of Congress and other organizations like FIRM, FEMA has not produced documentation that specifically outlines the basis for rating methodology. FEMA has provided a Rate Explanation Guide and a Discount Explanation Guide, but these documents do not clearly convey the accuracy, affordability and transparency of the methodology.

The Community Rating System (CRS) is a program by which communities can reduce flood insurance premiums for its residences by participating in education and mitigation projects. Only policies that reach full risk rating are eligible for the following discounts in Monroe County:

  • Unincorporated Monroe County – 35%
  • Islamorada – 25%
  • Key West – 25%
  • Layton – 25%
  • Marathon – 25%
  • Key Colony Beach – 20%

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