On April 1, 2016, National Flood Insurance Program (NFIP) premium rates are set to rise an average of 9%. This increase is less than the 2015 average and is consistent with the annual 5-10% increases prior to the 2012 Biggert-Waters Act, which made significant reforms to the NFIP.
Under 2014 Flood Insurance Affordability amendments, individual property owners could see a rate increase up to 18% for newer properties and 25% for older ones. With these April 1 changes, FEMA is implementing the next round of required technical changes and extensions to newly mapped and business properties.
- The 2-year grace period for NFIP policy holders who let their coverage lapse is coming to an end. Beginning April 1, those policyholders will have 90 days to reinstate their policy in order to maintain “continuous coverage” and continued eligibility for grandfathered or subsidized flood insurance rates.
- FEMA will begin requiring insurance companies to re-underwrite NFIP policies in order to determine if the underlying properties are being rated based on the most current flood map. This is a critical first step toward correcting inaccurate flood insurance rates and clearly communicating the full risk to all policy holders.
Read more about the April 1, 2016 changes.