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How Big Changes Coming to Flood Insurance Will Affect Commercial Property in Florida | Shutts & Bowen LLP


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The Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program (NFIP). The NFIP offers insurance coverage for physical losses to buildings and/or contents caused by a flood. Over the years, FEMA has incurred debt from the Department of Treasury to pay claims and expenses associated with NFIP-insured properties. According to the Government Accounting Office (GAO), FEMA is unlikely to collect enough in premiums from NFIP-insured properties to repay this debt. Although changes to the NFIP have been under consideration for some time in order to bridge the gap between premiums and expenditures, new rates for all NFIP-insured properties will go into effect on October 1, 2021 pursuant to a major overhaul of the NFIP referred to as “Risk Rating 2.0.” ....

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