# Understanding the NFIP RISC Act of 2021

The National Flood Insurance Program (NFIP) is a federal program that helps people in flood-prone areas get affordable insurance when private insurers won't cover them. This bill requires the Federal Emergency Management Agency (FEMA) to study and publicly report on how any major changes to flood insurance pricing will affect people before those changes actually take effect. Essentially, it's a transparency requirement that gives communities and policyholders a heads-up about what's coming.

Here's why this matters: FEMA periodically updates how it calculates flood risk and sets insurance rates. When they change their methodology, some people's premiums can go up significantly while others might see decreases. The bill requires FEMA to publish a detailed analysis at least six months before implementing new rates. This report must cover how the changes will affect insurance costs for different groups of people, especially low-income households who live in flood-prone areas because housing is cheaper there. The analysis also needs to look at whether people will drop their flood insurance coverage if rates get too high, how it impacts the overall finances of the program, and how it affects flood mitigation efforts in communities.

The bill also includes a temporary pause on any methodology changes. FEMA cannot implement new flood risk calculations during the COVID-19 emergency or for six months after it ends. This protection was meant to prevent rate shocks during a time when people were already financially stressed from the pandemic.

In practical terms, if you own property in a flood zone, this bill means you'll get advance notice and detailed information about upcoming insurance rate changes, rather than being surprised by a sudden premium increase. It also protects low-income communities from sudden pricing changes that might force people to drop coverage they need.

NFIP RISC Act of 2021

Rice, Kathleen M.

National Flood Insurance Program Reporting on Impact to Seaboards and Counties Act of 2021 or the NFIP RISC Act of 2021 This bill requires the Federal Emergency Management Agency (FEMA), prior to implementing any chargeable premium rate for National Flood Insurance Program coverage related to a change in flood-risk assessment methodology, to report on this change. The bill also prohibits FEMA from implementing these changes during the COVID-19 emergency period and for six months after this period.