Many of us may not be aware of the drastic policy changes that have been enforced by the Federal Emergency Management Agency (FEMA) to the National Flood Insurance Program (NFIP), effective October 1st. You might be asking yourself, “How does this affect me?”. If you own a home, or know someone who owns a waterfront home or property in lower lying areas, these policy changes could have a direct impact on your current policy or home buying process. If you would like a more detailed explanation of these changes that have already taken effect, please email me at for the article on the NFIP premium rate and rule changes. Additional information can also be found by visiting the FEMA website, If you have any questions regarding how these changes can affect you or someone you know, please to contact your insurance agent.

Here are a few highlights of the policy changes that could affect you:

  • Premiums will increase an average of 10 percent for policies written or renewed on or after October 1, 2013.
  • The Federal Policy Fee will increase from $40 to $44 for Non-Preferred Risk policies and from $20 to $22 for Preferred risk policies.
  • Preferred Risk policies issued under the Eligibility Extension Program will see annual increases averaging 20% beginning with new business and renewals effective on or after October 1, 2013. The Extended Eligibility issued policies will be rated with a separate rating table than those properties that are currently mapped in B, C or X zones.
  • Pre-Firm increases (including the Reserve Fund Assessment) include a 25% increase above the rates in effect when WB12 was enacted for policies issued on certain properties.
  • No extension of subsidy to new policies or lapsed policies for Pre-Firm properties in special flood hazard areas and Zone D.