NFIP – National Flood Insurance Program Changes October 1, 2013-Part III
This is the last post of the continuation series from NFIP – National Flood Insurance Program Changes October 1, 2013. This important information was obtained from Mary Elizabeth Petty of AAA Insurance Agency.
Result of NFIP changes – Exclusion of Certain Property from Receiving Subsidized Premium Rates (Renewals)
The NFIP will no longer allow renewals for certain Pre-FIRM buildings in a Special Flood Hazard Area (SFHA) or zone D to receive subsidized premium rates. Renewals of these properties will experience rate increases of up to 25% annually, until an elevation certificate is provided and indicates dull risk rates are lower than current rate applied.
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Severe Repetitive Loss(SRL) properties (a) A new rate table has been added to the Flood Insurance Manual for all new properties transferred to the NFIP Special Direct Facility(SDF) as well as Pre-FIRM SRL properties in an SFHA and Zone D. (b) Table reflects a 25% increase over the premium rates previously applied to Pre-FIRM SRL Properties
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Properties that have incurred flood-related damage in which the cumulative amounts of NFIP flood insurance claim payments equaled or exceeded the fair market value of the property. (a) This category of Pre-FIRM properties is considered a subset of all SRL properties. (b) SRL renewals for Pre-Firm buildings in an SFHA and Zone D for all 1-4 family residences will be rated using the new rate table, as will other SRL properties. (c) This new table will apply to all SRL renewal policies meeting the above criteria. (d) This table reflects a 25% increase over the premium rates previously applied to Pre-FIRM properties.
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Business properties as described below. (a) Effective 10/1/2013, the flood insurance application will include a new data field to capture whether a building is a business property or not. (b) Until business properties have been defined by the rulemaking process, business properties will continue to be rated using non-residential premium rates from Table 2A
Definition: For the purpose of completing the application, a business property is any non-residential building that produces income, or a building designed for use as office or retail space, or for wholesale, hospitality, or similar uses. Buildings that are permitted for residential use such as apartments, rental dwelling units, or churches are not considered business properties for the purpose of completing the Application.
NFIP Form Changes
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Changes will be made to the following forms (a) Flood insurance application (b) General change endorsement form (c) Preferred risk policy application – completion of application Part 2 will now be required (d) Cancellation forms
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Current versions of these forms will expire August 31, 2013
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Revised forms will incorporate data elements required for the implementation of the provisions of the Biggert Waters Act of 2012
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Further information on these data elements will be outlined in the National Flood Insurance Program Manual pages in relevant sections.
Related posts:
NFIP–National Flood Insurance Program Changes October 1, 2013-Part II
NFIP–National Flood Insurance Program Changes October 1, 2013-Part I
If you have question please contact your Insurance agent for clarification or visit www.Fema.gov
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