Flood Insurance Premium Refunds: Who Gets Them? Who Does Not?

The National Flood Insurance Program (NFIP) is in the process of implementing Congressionally mandated reforms required by the Homeowner Flood Insurance Affordability Act of 2014 that repeal and modify the Biggert-Waters Flood Insurance Reform Act of 2012. The new law slows some flood insurance rate increases and offers relief to some policyholders who experienced steep flood insurance premium increases in 2013 and early 2014. The new law reinstates many of the subsidized rates that were previously eliminated and calls for refunds of the difference between the subsidized rates and the higher full-risk rates that policyholders were required to pay as a result of Biggert-Waters. The law calls for most rates to be capped at no more than 18 percent per year, resulting in more gradual rate increases. The 18 percent cap will also result in refunds for some policyholders, which insurance companies will begin issuing in October 2014. It is important to note that refunds apply only to a small group of policyholders, and most policyholders will not receive refunds. Those who do will receive refunds on increases paid to their premiums for policies effective on or after October 1, 2013. This fact sheet provides an overview of what some eligible policyholders can expect in refunds later this year. While the new law is implemented, it is important for policyholders to maintain and keep their current flood insurance policies. Allowing policies to lapse will leave policyholders financially unprotected. Policyholders who have questions about their flood insurance policies should contact their insurance agents.

For more information, please click this link FEMA_HFIAA_Refund Fact Sheet_FINAL_508C_ToFEMA_070714

PIACT’s Russell elected secretary/assistant treasurer for PIA National

FAIRFIELD BOARD OF SELECTMEN CONDUCTS 11th ANNUAL FAIRFIELDER AND TOWN EMPLOYEE OF THE YEAR AWARDS