The National Flood Insurance Program will implement more changes in April 2015 that will directly affect all policy holders. These changes come as a result of the Homeowners Flood Insurance Affordability Act and the Biggert-Waters Flood Reform Act of 2012. Keep yourself informed and know what to expect when your policy comes up for renewal or when purchasing a new home. Below is a quick breakdown of some of the changes you will see:
(1) Annual rate increase limitations have been adjusted limiting individual premium increases to no more than 18%.
(2) Reserve Fund Assessments will increase for all policyholders by 15% with the exception of Preferred Risk Policyholders. This 15% Reserve Fund Increase will phase in over time. Preferred Risk Policyholders (individuals holding policies for property in an “X” zone) will see a Reserve Fund Assessment increase on their policy of 10%.
(3) Annual Surcharges in addition to the policy premium will now be implemented for primary and secondary residences.
- Primary residences will see a $25 surcharge annually.
- Secondary residences will see a $250 surcharge annually.
(4) Federal Policy Fee will increase for all policy holders:
- Preferred Risk Policyholders will see a $22 Federal Policy Fee included.
- All other policies will see a $45 Federal Policy Fee included with the exception of some commercial risks, which have varying fees depending on units insured.
Take a look at a brief review of Program Changes by the National Flood Insurance Program to be implemented in April 2015.
We encourage you to reach out to your insurance agent with any questions. Please do not hesitate to call one of the informed professionals at McKay Insurance if they can be of any assistance. They can be reached at 843-881-2229.
Post courtesy of McKay Insurance
