On June 26, FEMA released guidance related to providing refunds to property owners that overpaid for flood insurance. Pursuant to Section 3 of the Homeowners Flood Insurance Affordability Act (HFIAA), refund amounts will be determined using rates made available in Bulletin W-14026 issued on May 29, 2014. Section 3 of HFIAA requires FEMA to restore Pre-Flood Insurance Rate Map (FIRM) subsidized rates and issue refunds of excess premiums collected above the subsidized rate for:
- Pre-FIRM properties not insured when the Biggert-Waters Flood Insurance Act of 2012(Biggert-Waters) was enacted;
- Pre-FIRM properties purchased after Biggert-Waters was enacted; and
- Policies for Pre-FIRM properties that were rated full-risk under Biggert-Waters due to a lapse in coverage, but only for policies where the lapse was due to a property owner no longer being required to purchase flood insurance.
The issuance of refunds will begin on Oct. 1, 2014, and must be completed by Dec. 31, 2014.