What changed under Risk Rating 2.0?
FEMA says the older NFIP method primarily considered flood zones and elevations and had not been updated in 50 years. Risk Rating 2.0 assesses each property, including how often flooding occurs, multiple flood types (river overflow, storm surge, coastal erosion and heavy rainfall), proximity to flood sources, and building characteristics such as first floor height and the cost to rebuild.
FloodSmart groups the premium variables into where the building is (distance to the coast and other water, ground elevation, community and any CRS discount), how it is built (occupancy, foundation type, first floor height, number of floors, construction type, flood openings and elevated machinery and equipment) and what is covered (replacement cost, coverage limits and deductibles).[1][2]
How fast can my premium go up?
Policyholders whose new rate was lower moved to it at renewal, while increases are phased in, with most annual increases capped at 18% until the full-risk rate is reached; FloodSmart notes the cap usually does not apply to new policies. In July 2023 the Government Accountability Office reported that about one-third of policyholders were already paying full-risk premiums and that 9% would eventually need increases of more than 300%.
Your bill also includes charges set by FEMA. As of 2026 these include a Reserve Fund Assessment of 18% of the discounted premium, an HFIAA surcharge of $25 for a primary residence ($250 for other occupancies) and a $47 Federal Policy Fee for most policies.[1][2][3]
Which discounts apply in Boca Raton and Palm Beach County?
The Community Rating System (CRS) discount applies to all eligible NFIP policies in a participating community, regardless of flood zone. The City of Boca Raton says its improved CRS classification raised the discount for qualifying NFIP policies from 15% to 25% starting in October 2025.
Palm Beach County's posted CRS list, dated April 1, 2023, showed Class 5 (25%) for unincorporated Palm Beach County and West Palm Beach, among others, and Class 6 (20%) for Delray Beach; ask your agent for your community's current class. Other NFIP discounts can apply for elevating machinery and equipment, installing proper flood openings, or insuring within a year after a map change newly places a building in a high-risk zone.[2][4][5]
Key takeaways
- Risk Rating 2.0 has priced new NFIP policies since October 1, 2021 and all renewals since April 1, 2022.
- Premiums now reflect each building's own risk and rebuilding cost, not just its flood zone.
- Most annual increases on existing NFIP policies are capped at 18% until the full-risk rate is reached.
- Boca Raton's CRS discount for qualifying NFIP policies rose to 25% starting in October 2025.
- Elevated equipment, flood openings and timely purchase after a map change can lower premiums.
Sources
- [1]FEMA — Fact Sheet: Understanding Risk Rating 2.0 (July 2025)
- [2]FEMA FloodSmart — Premium Costs
- [3]U.S. Government Accountability Office — Flood Insurance: FEMA's New Rate-Setting Methodology Improves Actuarial Soundness but Highlights Need for Broader Program Reform (GAO-23-105977)
- [4]City of Boca Raton — Floodplain Management
- [5]Palm Beach County Office of Emergency Management — Flood Programs (NFIP and CRS)
Reviewed October 11, 2026. General real-estate information for Florida, not legal, tax, lending or insurance advice. Laws, rates and deadlines change — confirm property-specific facts with the agency cited, a Florida real-estate attorney, CPA or licensed insurance agent.