The Federal Emergency Management Agency will soon implement a change to the way flood insurance is calculated.
FEMA's risk rating will now include five variables to calculate the cost, those are flood type, frequency, distance to water, property characteristics, and cost to rebuild.
According to a QuoteWizard by LendingTree study, 62% of North Dakotans and 71% of Minnesotans will see a price increase.
It's a quote that will stay consistent no matter where you go in town.
"If you go to my agency, or any agency in town, it's all the same because it's regulated by FEMA. So it can range from $1,200 to $3,000 if you're in the flood zone," said Lori Bartz, Account Manager at Hub International Insurance in Fargo.
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The change will go into effect April 1, and while Bartz does not know what the price increase will look like, she said it won't be significant for the essential service.
"They just buy it for the peace of mind in case something like a lift station goes out or overland flooding, which that can happen," said Bartz.
The average cost for North Dakotans is currently $766 per year, and $932 for Minnesotans.
The QuoteWizard study predicts only 7% of North Dakotans will see their flood insurance increase more than $60, while it predicts that will be the case for only 10% of Minnesotans.
