(WBNG) -- The Federal Emergency Management Agency announced they will be changing the way they price flood insurance.
Starting October 1st for new customers and April 1st for existing customers, FEMA will unveil Risk Rating 2.0.
Risk rating 2.0 will see that the cost of flood insurance will be primarily based on each property's flood risk and the cost to replace it.
In the state of New York, 64% of policyholders will see an increase in monthly premiums, while 32% will see a decrease.
QuoteWizard Senior Research Analyst Nick VinZant said that due to the outdated system FEMA was using to assess insurance rates, they needed to update it in order to accurately reflect each property's risk.
"The way that they are making those changes is they are going to base your flood insurance on the risk that your house is facing the historic flooding risk, and the cost of replacing it," he said.
"So if you are more at risk of flooding you are going to be paying more, but if you have less flood risk you are going to be paying less."
VinZant added that although rates may increase, customers should not worry about them skyrocketing.
"For the people who are going to see an increase it's going to be relatively small," he said.
"Usually around 10 dollars a month, but for the people that are going to see a decrease, that decrease is going to be huge up to 100 dollars a month in flood insurance premiums."