SAN DIEGO (November 11, 2021) – The National Association of Realtors® hosted FEMA's Senior Executive of the National Flood Insurance Program (NFIP) David Maurstad at the 2021 REALTORS® Conference & Expo in San Diego, California, to give an update on the NFIP's new Risk Rating 2.0: Equity in Action system. At a meeting of the association's insurance committee Thursday morning, the two organizations expressed their shared support for the modernized pricing system and renewed their commitment to ensuring consumers are informed and prepared.
"NAR and FEMA have worked together for a decade to diagnose the problems with flood insurance pricing and develop this new methodology," said NAR President Charlie Oppler, a REALTOR® from Franklin Lakes, N.J., and CEO of Prominent Properties Sotheby's International. "NFIP Senior Executive Maurstad and his team spent dozens of hours answering our members' questions, providing data and updates, and implementing feedback from NAR's member insurance committee. We appreciate the extensive and open dialogue over the years and today in San Diego.
"Risk Rating 2.0 is a necessary update to a 50-year-old rating system that now prices homes individually based on modern technologies, standards, and science. NAR supports this updated, equitable pricing model, and we look forward to continuing to work with FEMA to enhance resiliency nationwide."
"NAR and FEMA know that insuring against flood risk adds value to a new home purchase. NAR's support of Risk Rating 2.0: Equity in Action marks a new chapter in our valued partnership and shared goal to reduce disaster suffering after a flooding event," said NFIP Senior Executive Maurstad. "The Federal Insurance and Mitigation Administration (FIMA) has combined the power of technology-driven data and actuarial science with a commitment to make premiums equitable and easier for homebuyers to understand. With NAR's backing, I'm even more confident that Risk Rating 2.0 will help advance more resilient homes, neighborhoods, and communities."
NAR and FEMA co-signed a Memorandum of Agreement (MOA) on October 28, 2018, to collaborate and contribute to public awareness about the importance of flood resiliency and insurance. Most notably, the agreement outlined the commitment of both organizations to:
Meet regularly and share information about mutual efforts to educate the nation and sharpen outreach, communications, and messaging to help consumers make informed decisions;
Review, strengthen, and co-brand educational materials and resources for property owners and buyers, including a comprehensive toolkit on disaster preparedness; and
Collaborate on ways to effectively disseminate this information using combined communications channels and social media networks.
When FEMA began phasing in Risk Rating 2.0: Equity in Action on October 1, 2021, NAR rolled out a comprehensive toolkit for members. FEMA also offers a dedicated webpage with consumer resources.
The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
# # #