Changes are coming for New Jersey flood insurance policyholders. Most notably, the cost. Starting this Friday, Oct. 1, FEMA is rolling out an update to the National Flood Insurance Program it calls Risk Rating 2.0. The plan changes the way flood insurance rates are calculated and proponents say it better reflects the real cost of flooding. But it’s also expected to come with a higher price tag for the majority of New Jersey property owners. Many are scrambling to get policies in the wake of Tropical Storm Ida and FEMA says the changes mean no one will pay more than their “fair share.”
But how does it work? Carolyn Kousky, the executive director at University of Pennsylvania’s Wharton Risk Center, explains.
