The federal flood insurance program uses a more accurate technique to assess the risk of flooding for homeowners. This has resulted in significant rate increases for some property owners, with average increases of over 600%. 

The new system considers factors such as rainfall, proximity to the coast, and rebuilding costs, rather than relying on outdated flood maps. This change has already affected the real estate market and has led to calls for government assistance for low-income property owners. Higher rates may also be experienced in inland areas and unexpected locations affected by rain after wildfires. The new pricing structure aims to eliminate subsidies for more expensive properties and make the system fairer. 

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These changes will also likely affect the private flood insurance market. The National Flood Insurance Program (NFIP) has accumulated significant debt and must pass on costs to policyholders. Regular homeowners’ insurance often does not cover flood damage, so separate flood insurance is necessary. Even those living outside high-risk areas should consider purchasing flood insurance, as a quarter of flood insurance claims come from low- or moderate-risk locations. It is recommended to rely on something other than government disaster relief, as the maximum amount is limited. However, federal flood insurance can provide coverage of up to $250,000 for a home's structure. Assessing flood risk involves using FEMA maps as a starting point and consulting additional resources considering climate change and excessive rainfall. If flood insurance is too expensive, alternative measures such as elevating valuables, sealing basements, installing flood vents, and implementing community-based solutions to reduce flood risk can be taken. 

Overall, flood insurance is necessary to protect valuable assets and aid recovery. The NFIP provides flood insurance and helps with flood mitigation by enforcing flood plain management rules. You must purchase flood insurance if you live in a high-risk flood zone and have a government-backed home equity loan. 

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