Washington Report

Advocacy Updates from Washington D.C.

FEMA Releases Refund Guidance

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.

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