MAY2016 NewRatesNowinEffect for National FloodInsuranceProgram Several changes to the National Flood Insurance Program (NFIP) took effect on April 1, affecting a wide range of builders, developers, businesses, home owners and insurance agents operating in areas covered by the NFIP. FEMA has indicated that the maximum individual rate increase for any individual policy is 18% , with a few exceptions. The guidance also states that average premiums ? once certain fees are accounted for ? will increase 9% for policies written or renewed on or after April 1. For most risk classes, the average annual premium rate increases are limited to 15% .
zone, property type, and year built ? which affects whether it is depicted on the Flood Insurance Rate Map (FIRM) ? still play a role in individual premiums. Other changes include new rating methodology for properties newly mapped into a Special Flood Hazard Area and the elimination of subsidies for certain pre-FIRM policies that lapse and are reinstated past 90 days. In instances where a policyholder wants to return to the NFIP program after a lapse, he or she must obtain an elevation certificate and pay the full-risk rate.
Furthermore, HFIAA Section 28 The National Association of Home requires FEMA to clearly communicate Builders (NAHB) has prepared a full flood risk determinations to summary of the changes to the NFIP. individual property owners, regardless Many changes are a result of continued of whether their premium rates are implementation of the Homeowner full-risk rates. To achieve this, FEMA Flood Insurance Affordability Act of will require NFIP insurers to report 2014 (HFIAA) and the Biggert-Waters current flood zone and rate map Flood Insurance Reform Act of 2012 information for all new business polices effective on or after April 1 and (BW-12). for all renewals effective on or after In its summary, FEMA notes that changes Oct. 1. will also affect mapping, mitigation efforts and program outreach. Each property will see distinct impacts because characteristics such as flood
BOARD OF DIRECTORS President Kevin Kerns Vice President St even Ziet z Treasuer Michel e Bueker Secret ary Jef f rey Nickl yn Immediat e Past President Michael Tribbl e Direct ors James Bouf f ord Timot hy Gohm Nat han Moel l er David Schauman Mark Wahl Tony Bosco Don Hol l is Tracy Reimus Dan Wort man Debra Bef f rey Dennis Dit t enber Seymour Geiersbach Ron Schauman Jef f ery Tit hof Tom Bail ey