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Pointers In Business Law (Suarez) (1).pdf - read Pointers In Business Law (Suarez) (1).pdf in your e-book Reader for free.Flood insurance is a federal program, with the United States Department of Homeland Security in charge of providing it. Since private insurers can’t operate in the 50 states, the Federal Emergency Management Agency (FEMA) steps in.
Insurers use an actuarial scale to determine how much to charge for insurance. This rating scale goes from a one to a 100. The higher the scale number, the higher the risk. The cost of the policy is based on the number on the scale.
The scale was developed based on flood records from 1947 through 1987. It rates risks as having a “1-in-100-year” chance of flooding. This rating reflects a flood with a 1 percent chance of occurring every year in the course of the next century.
Here’s a closer look at the numbers:
Rating Number
Chance of Flooding
10
1 in 100
20
1 in 50
30
1 in 25
40
1 in 10
50
1 in 5 ac619d1d87
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