How FEMA's new flood insurance pricing will impact your wallet Nashville Tennessean For an estimated 72% of Tennesseans who hold National Flood Insurance Program policies, premiums are about to go up. The NFIP, run by the Federal Emergency Management Agency, is overhauling its methodology for setting flood insurance prices for the first time in about 50 years. Starting Oct. 1, premiums for new NFIP policies will be based on individual properties' flood risk and the estimated cost of rebuilding those properties if flood damage occurs. This model has been standard in the insurance industry for years, but is only now being adopted by the NFIP. FEMA officials and insurance experts say the switch to "Risk Rating 2.0" will make the program more financially sound, adaptable and equitable.