![]() A third of single-family home policyholders are already paying a risk-based premium, while others are paying lower premiums that are discounted by law. These full-rate estimates will be updated periodically as risks change.Ĭurrent Cost of Insurance: This is what policyholders are paying today. Many policyholders pay less than their full rate (see below). This rate is based on the expected costs of losses and programmatic expenses, without subsidies. Risk-Based Cost of Insurance: This is what policyholders would pay if they were paying their full actuarial rate as evaluated under the rates implemented Oct. In the national data, homes with flood insurance costs that are less than $1,000 per year have an average RCV of $494,090. This calculation is based on a number of factors such as the building’s square footage and ZIP code. For example, 40% of policies nationwide fall into the $0-1,000 range, while 31% cost between $1,000 and $2,000 per year.Īverage RCV (Replacement Cost Value): The estimated cost of replacing the building and any insured contents after a disaster. PIF Distribution: In Exhibit 1, the PIF distribution isthe percentage of policies within each price range. The data does not include multi-family and non-residential policies because these have different coverage amounts and values than typical single-family homes. These exhibits only show policies for single-family homes, where each household has its own policy. Policies in Force (PIF): Number of insurance policies. ![]() See below for risk-based versus current costs. This is based on total risk-based costs per year. Range of Cost of Insurance: Price ranges for insurance premiums.
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