Flood insurance updates are long overdue for Iowa

Iowans are no strangers to floods. From the disastrous 2008 flood to the 2019 spring floods that devastated 250,000 acres of farmland in the Mississippi River Valley, resilience is constantly top of mind for the state.

Given their personal experiences, Iowans also know the importance of flood insurance, which financially protects people, farmsteads, buildings, and belongings when floods happen. Now, for the first time in 50 years, the Federal Emergency Management Agency (FEMA) is updating how it prices flood insurance. This is a key aspect of a comprehensive flood resilience and disaster preparedness strategy — one that combines federal, local, and private input and resources to protect our communities from flooding.

This long overdue update, called Risk Rating 2.0, will create a fairer, more transparent system for insuring against flood damage. For decades, many policyholders have been paying too much for their flood insurance — this was noticeably the case in Iowa. With Risk Rating 2.0, homeowners’ rates will better reflect their actual risk of flooding and property value.

For many, that means lower rates. Under the new system, 37 percent of all policyholders in Iowa will see immediate drops in their premiums. And in Linn County, which sees flooding from Cedar River, over 98 percent of policyholders in single-family homes will see premiums either decrease or modestly increase (by $1 —$10) in line with current rates.

Previously, FEMA’s one-size-fits-all approach priced insurance largely on where a property landed in the flood zone. This meant that many households were paying similar prices for flood insurance, regardless of property value, and even if some properties were at much higher risk than others.

With Risk Rating 2.0, FEMA will consider factors to price flood insurance for individual properties. Such factors include different kinds of flooding (like river or flash floods), as well as how far a property is from a potential source of flooding. Critically, FEMA also will consider the costs to rebuild a home if it needs to be replaced after a flood.

Under the old system, an $80,000 home could face the same flood insurance premiums as a $1 million luxury property, so long as they were in the same flood plain. The cost of rebuilding each home would differ dramatically, and that difference will now be reflected in each property’s insurance rate. This new system will be much fairer and more favorable for hardworking Iowans.

Altogether, Risk Rating 2.0 will give policyholders a more accurate and transparent picture of their property's flood risk, while continuing to provide peace of mind if their homes flood. But flood insurance isn’t the only way to build resilience. Iowans are also exploring innovative ways to measure and reduce flood risk.

For example, the Northeast Iowa Resource Conservation & Development, in partnership with the American Flood Coalition, is measuring the flood reduction benefits of multi-cropping, a regenerative agriculture practice in which farmers plant cover crops that improve soil quality.

We saw how farmers are building flood resilience firsthand when we visited FLOLO Farms in Fayette County last summer. Using this technique, farmers can improve soil health, increase revenue, and absorb more water to reduce flooding by 40—60 percent.

The state also has its own flood center. Launched in the wake of devastating floods in 2008, the Iowa Flood Center within The University of Iowa is a national leader in flood research and education, providing Iowa communities access to state-of-the art forecasts and flood information. The Iowa Flood Center is putting Iowa at the forefront of innovative solutions to prevent flooding.

Several federal efforts are also in motion to improve flood resilience. The recently signed appropriations package includes funding to update flood hazard mapping and risk analysis. This will help ensure that Iowans have a full and accurate picture of flood risk before buying a home or property. And better flood mapping allows cities to make more informed decisions about where to safely build infrastructure like hospitals and schools.

Flood insurance updates under Risk Rating 2.0 will complement these and other existing resilience strategies, helping Iowans understand their true flood risk and reflecting that risk in a fair price. With Risk Rating 2.0, flood insurance will be more effective across the board, all while better protecting lives and livelihoods.

We must, and will, continue working together to advance resilience priorities and ensure Iowa families, businesses, and community centers are prepared for future floods.

U.S. Rep. Ashley Hinson represents Iowa’s 1st District. Melissa Roberts is founder and executive director of the American Flood Coalition.

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