“There are changes in Flood Insurance Costs that will take effect beginning April 1, 2015. Implementation of the National Flood Insurance Program (NFIP) reform legislation will brings higher costs for some, and financial relief for others.
Flood insurance companies are sending out letters, mandated by FEMA, titled “Verification of Primary Residence Status” for NFIP policy rating. The purpose is to determine if the insured location is the primary residence, which qualifies for preferred rating.
Of you ignore this letter, it is assumed to be a non-primary location and there will be a $250 surcharge on all non-primary policies. If the letter is returned confirming it is the primary residence the policy has a $25 surcharge. To qualify for the minimal surcharge the letter must be accompanied by proof of residency, such as a driver license copy or utility bill. These changes are a direct result of “Section 8 of the Homeowner Flood Insurance Affordability Act of 2014.” If you have questions, it is suggested that you reach out to your individual policy representative. Following is a copy of the news release being distributed:
The Federal Emergency Management Agency (FEMA) is implementing additional changes to the National Flood Insurance Program (NFIP) as directed by the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) and Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters). Some flood insurance policyholders may see significant increases in what they pay compared to prior years. The biggest increases will affect the owners of some older homes that are not used as the owner’s primary residence. The lower, subsidized rates that previously applied to these older properties are being phased out, and policyholders could see an increase of 25 percent, plus a surcharge. “