National Flood Program Changes Rolling out on 4/1/2015
1- First Annual increase set by HFAA
- Limiting premium (not surcharges) increase for Pre-Firm Primary to 18%
- Limiting premium (not surcharges) increase for Pre-Firm Secondary, Severe Repetitive Loss Properties and substantially improved properties to 25%
- Business Properties will have a 25% Increase next year
2- Surcharges will be applied: $25 on Primary Residences and $250 on all other.
3- Federal Policy Fee will remain $22 for PRPs and will increase to $45 for all other policies except condominiums of 2 units or more.
4- The Reserve Fund Assessment will increase an average of 9.9%. The Reserve Fund Assessment + the Federal Policy Fee combined will be an average increase of 19.8% alone – not including premium.
5- Increased Deductible Option of $10,000 available, but must apply to both building and property.
6- Properties newly mapped into a hazard zone will have 1 year of Preferred Risk Premium and then will transition into full risk rates at no more than 18% premium increase per year – remember surcharges are on top of this.
7- When a Pre-Firm building is rated using an elevation certificate, the preferred rate will always be taken. So if the subsidized rate is more favorable than the rate using elevation information, the subsidized rate will prevail.