For fifty years, the NFIP priced flood insurance by zone. Every house inside the same line on a map paid roughly the same. Risk Rating 2.0, implemented April 2023, replaced those lines with property-level calculations: flood type, distance to water, elevation, cost to rebuild. The program now knows what each of its 4.5 million policies should cost.
Congress caps annual premium increases at 18%. Late 2022 median premium: $689. Actuarial price: $1,288. Risk accelerates; capped premiums crawl. That widening gap sits on the federal ledger as $22.5 billion in Treasury debt.