Beginning May 1, 2014, for all new applications for flood insurance and renewal of flood insurance policies for properties covered by Section 3, FEMA will require its Direct Servicing Agent and Write Your Own companies to use the October 1, 2013 Pre-FIRM subsidized rates when more favorable for properties covered by Section 3. Pre-FIRM homes, meaning those built before the community in which they are located joned the National Flood Insurance Program, will no longer be required to have a flood elevation certificate in order to determine pricing. If an elevation certificate is submitted, the homeowner would receive the lesser of the subsidized premium or the rate as determined by the measurements in the elevation certificate. In addition, post-FIRM homes built in compliance will qualify for reduced premiums if the flood zone in which the home is located has changed since the home was originally built or substantially improved. For instance, if a home was built in compliance with the building standards for an A flood zone in 2006 but the flood zone changed to a V zone in the July 2013 re-mapping, the home would be rated as if it were still in the A zone.
If you would like to learn more about the May 1 flood insurance changes, please call us today!