NFIP Flood policies have historically experienced annual premium increases. With RR 2.0, FEMA has the ability to price Flood policies in a way that is actuarially sound, equitable, and reflects a property’s actual flood risk. As a result, with RR 2.0 some policyholders may experience renewal policy premium increases of up to FEMA’s 18% annual cap – sometimes referred to as the “NFIP glide path” – while other policies could see premium decreases.