FEMA Announces Program Changes to the National Flood Insurance Program (NFIP)

Intergovernmental Affairs Advisory

FEMA Announces Program Changes to the National Flood Insurance Program (NFIP)

April 3, 2018

April 1, 2018 Changes 

As previously announced on September 29, 2017, key changes are being made to the National Flood Insurance Program (NFIP) beginning April 1, 2018. These changes include updated insurance policy premiums conforming to the premium rate caps established by the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) and the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA).

In accordance with statutory requirements, premiums increased from an estimated average of $866 per policy to $935, for an average increase of 8.0 percent.  Premiums did not include the HFIAA surcharge or the Federal Policy Fee (FPF). When the HFIAA surcharge and FPF were included, the average total amount billed to the policyholder increased from $994 to $1,062, for an average increase of 6.9 percent.

Additional changes for April 1 include:

  • Increased Cost of Compliance (ICC) premiums, which have remained constant over several years, minimally increased to keep up with inflation.
  • FEMA is now allowing a policyholder and a policyholder’s spouse to benefit from the lower HFIAA surcharge when they each reside in a separate primary residence more than 50 percent of the year.

However, please note, for policies issued on or after April 1, 2018, there will be no changes to:

  • Deductible Factors
  • Federal Policy Fee
  • Reserve Fund Assessment
  • HFIAA Surcharge
  • Probation Surcharge

October 1, 2018 Changes 

This week, FEMA announced program changes that will take effect on October 1, 2018, and impact individual policyholders as their policies renew. These include:

  • Allowing policyholders who purchase a private flood insurance policy to cancel their duplicate NFIP policy;
  • Requiring NFIP insurers to notify certain policyholders of a lower-cost premium option; and
  • Extending the eligibility for the Newly Mapped procedure rating option.

FEMA’s primary focus remains improving NFIP delivery and the customer experience, and as such we will continue to enhance support for customers. The NFIP provides the best opportunity for homeowners, renters, and businesses to protect themselves financially against flooding.

If individual policyholders have questions about their premiums, or NFIP coverage, we urge them to reach out to their insurance agent, or visit FEMA’s website, for more information.

If you have any questions, don’t hesitate to contact us. Please reach out to FEMA’s Intergovernmental Affairs Division at 202-646-3444 or fema-iga@fema.dhs.gov.