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FEMA expected to make changes to flood insurances prices, regulations

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NASHVILLE, TN (WSMV) - Starting next month, FEMA is changing flood insurance nationwide and Tennesseans will also see a difference in their policies.

From Hurricane Ida, flash flooding this week in Maury County and the deadly floods in Humphreys County all show us that we’re seeing water rise more often.

“It doesn’t matter if you don’t believe in climate change, your insurance company does,” Nick VinZant, a senior research analyst at Quote Wizard, said.

VinZant said FEMA is changing the way flood insurance is regulated and the prices for flood insurance.

“What they’re doing is they’re trying to make it more equitable nationwide so that people who are living in high risks, high flooding areas are paying more because of the risks their particular house is facing,” VinZant said.

VinZant said beginning Oct. 1 that 77% of policyholders nationwide are going to see an increase.

“Now, those increases are going to be relatively small, a little bit less than $10 for most people. On the other side of that, while there’s going to be less people, 23% will see a decrease. Those decreases are going to be substantial, as much as $100 a month in some cases,” VinZant said.

So, what about the Volunteer State? VinZant said 72% of Tennesseans will pay more for their flood insurance policy.

“Most of the people who are going to be paying more are going to be paying around $10 to $20 a month more,” VinZant said.

As for the people paying less.

“As much as $100 less a month for flood insurance,” VinZant said.

Quote Wizard also compiled information about Davidson and Humphreys counties.

“When we look at Davidson County, what we’re seeing is about 64% of policyholders are going to be paying a little bit more, around $10 a month. On the flip side of that, we’re seeing that about 6% of policyholders are going to be paying about $100 less every single month,” VinZant said. “Davidson County is really kind of following along with the trend that we’re seeing nationwide in that a lot of people are going to be paying a little bit more, but a small number of people are going to be paying a lot less.”

VinZant also broke down the numbers for Humphreys County.

“When we look at Humphreys County specifically, what we found is that 44% of policyholders are going to see an increase of about $10 month. But on the other side of that, we’re seeing that around 4.5% of policyholders are going to see a large decrease of $100 or more in their policies,” VinZant said. “I would say that most people who are getting a new policy now are probably going to be paying a little bit more than they would have under the old FEMA rules, but we’re not seeing substantial increases in Humphreys County.”

Why the change all of a sudden? Is it just because of more rain?

VinZant said a lot has to do with the fact that FEMA has outdated maps, a story News4 Investigates highlighted last November.

“As much as 50 years old, and so what they’re doing is essentially changing, from changing flood insurance from being based on where you live to being based on the specific risks that your house or property is facing,” VinZant said. “They’re doing that basically by looking at what are the flood history where you live and how much does it cost to replace your house.”

A costly situation and burden so many people in Middle Tennessee know all too well.

Quote Wizard also broke down the information for nearby counties: is now with you on the go! Get the latest news updates and video, 4WARN weather forecast, weather radar, special investigative reports, sports headlines and much more from News4 Nashville.

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