Flood Insurance Changes as of April 1, 2015

There are cost changes coming into effect on April 1, 2015 to flood insurance. For some this will result in lower rates and more affordable insurance, for others though, the cost will be going up. The Federal Emergency Management Agency (FEMA) will be implementing more changes to the National Flood Insurance Program (NFIP) as directed by the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) and Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters).

Older homes that are not your primary residence are going to be subjected to the highest increase. The lower, subsidized rates that previously applied to these properties are being phased out and homeowners will be looking at a cost in crease of 25% plus a surcharge. The changes will also bring lower initial rates for properties that are now considered high risk due to changes in FEMA flood maps. This will last for 12 months after the changes to the maps are made and then will gradually increase to reach their full risk rate.

Some of the important Flood Insurance changes take effect in April as the result of the Homeowner Flood Insurance Affordability Act (HFIAA) and the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters):

  • Implementation of the annual surcharges that are required by the are HFIAA
  • Increasing the reserve fund assessments required by Biggert-Waters
  • Guidance on substantially damaged and substantially improved structures and additions rating guidance on Pre-Flood Insurance Rate Map (FIRM) structures
  • Implementation of the annual surcharges required by HFIAA
  • New deductible options
  • Implementation of a new procedure for Properties Newly Mapped into the Special Flood Hazard Area and existing Preferred Risk Policy Eligibility Extension (PRP) policies
  • Implementation of the first annual rate change that sets rates using rate increase limitations set by HFIAA, for individual premiums and rate classes

Federal Policy Fee (FPF) Changes

Make sure you complete and return the residency forms from your insurance company/agent, as your responses (or lack thereof) will impact your renewal rate.

If you have any questions about your current policy and what changes you may incur please call us at 813.876.4166 and one of our specialists will be on the line to help you.

To learn more about Flood Insurance you can read in detail at I Got Dropped.