The purpose of this bulletin is to stop charging full risk-rates for all types of Pre-Flood Insurance
Rate Map (FIRM) properties covered by section 3 of the HFIAA which includes primary residences
and businesses. Section 3 of the HFIAA requires FEMA and WYO companies to restore Pre-FIRM
subsidized rates for the following properties: (a) Pre-FIRM properties that were not insured when
Biggert Waters was enacted; (b) Pre-FIRM properties that were sold after Biggert Waters was
enacted; and (c) policies for Pre-FIRM properties that were rated full-risk under Biggert Waters due
to a lapse in coverage.
Effective May 1, 2014, FEMA is requiring the WYO Companies and the Direct Servicing Agent to
use the appropriate October 1, 2013 Pre-FIRM Rate Tables when more favorable than full-risk rates
for the following types of scenarios:
• New application for Pre-FIRM buildings rated in zones Unnumbered A, AE, A1-A30,
AH, AO, V, VE, V1-V30 and D effective on or after October 1, 2013, and processed
on or after May 1, 2014 (previously impacted by Section 100205 (g)(1) of BW-12);
Subject: Section 3 of the Homeowner Flood Insurance Affordability Act of 2014 (HR 3370)
• Pre-FIRM subsidized policies assigned to a new building owner upon a purchase
occurring on or after July 6, 2012, where the endorsement is effective on or after
October 1, 2013. and processed on or after May 1, 2014 (previously impacted by
Section 100205 (g)(2) of Biggert-Waters);
• Reinstatement on or after October 4, 2012, of a lapsed Pre-FIRM subsidized
policy processed on or after May 1, 2014 (previously impacted by Section 100205
• Renewal of all policies for Pre-FIRM buildings that were not insured when
Biggert Waters was enacted in zones Unnumbered A, AE, A1-A30, AH, AO, V,
VE, V1-V30 and D processed on or after May 1, 2014 (previously impacted by
Section 100205 (g)(1) of Biggert-Waters); and
• Renewal of all policies for Pre-FIRM buildings that were purchased after Biggert
Waters was enacted in zones Unnumbered A, AE, A1-A30, AH, AO, V, VE, V1-
V30 and D processed on or after May 1, 2014 (previously impacted by Section
100205 (g)(2) of Biggert-Waters).
As required by the HFIAA, FEMA will continue to consult and coordinate with WYO insurers
and other stakeholders as we implement other provisions of the law, including premium refunds.
Thank you for your patience. For questions, please contact Joe Cecil at (202) 212-2067.
cc: Vendors, IBHS, FIPNC, Government Technical Representative
Required Routing: Accounting, Data Processing, Underwriting, Marketing
KEATING URGES SWIFT IMPLEMENTATION OF NEW FLOOD INSURANCE LAW & REIMBURSEMENTS FOR HOMEOWNERS
Washington, DC – Today, Rep. Bill Keating sent a letter to Craig Fugate, Administrator of the Federal Emergency Management Agency (FEMA), urging swift implementation of the Homeowner Flood Insurance A
We encourage all our members to write similar letters to their local and state newspapers.
Thank you Allison Galdorisi, on behalf of all of us.
When will flood insurance relief take effect?
By ALLISON GALDORISI NEW DORP BEACH The following was sent to Rep. Michael Grimm and Sens. Charles Schumer and Kirsten Gillibrand: When will the Homeowner Flood Insurance Affordability Act be implemented, and when will I see a reduction...
The agency is also anxious to correct a misconception that a new law delays implementation of the maps for three to five years."
"There are also some misconceptions about what the new law accomplishes regarding flood insurance rates.
The Act lowers rates to be charged to some policyholders and limits increases in policy charges for some. But, Pinkham stressed, the exact details of these changes are still being determined.
Under the new law, rate restrictions would not apply to second homes or businesses. Keating has stressed that he tried to protect those properties, but the original bill shielding them was amended to exclude them.
Homeowners and property owners cried foul last year when they learned that FEMA had redrawn flood maps in response to several years of epic storms that ran the National Flood Insurance Program more than $20 billion into the red. In addition, FEMA had the go-ahead to increase premiums significantly."
Federal Emergency Management Agency responds to flood insurance debate
A delay does not a capitulation make. And the Federal Emergency Management Agency, or FEMA, is standing by the methodology it used to update the region's flood maps.