How April 1, 2015 National Flood Insurance Program Changes Will Affect Your Flood Insurance Premiums

The following pertains only to the NFIP program. Private Carriers are not affected.

The National Flood Insurance Program (NFIP) has implemented congressionally mandated reforms required by the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA).

Flood insurance rates and other charges will be revised for new or existing policies beginning on April 1, 2015.

In addition to insurance rates, other changes resulting from Biggert-Waters and HFIAA will be implemented that will affect the total amount a policyholder pays for a flood insurance policy.

The changes taking place in April include an increase in the Reserve Fund Assessment, the implementation of an annual surcharge on all new and renewed policies, an additional deductible option, an increase in the Federal Policy Fee, and rate increases for most policies.

Key changes include:

  • Limiting increases for individual premiums to 18 percent of premium.
    Limiting increases for average rate classes to 15 percent.

Increasing the Reserve Fund assessment to 15 percent of premium.  In addition to general rate increase.

Implementing annual surcharges required by HFIAA on each policy.
Annual surcharges are as follows: These are in addition to the reserve fund.
Primary Residential: single-family and individual condominium units:   $25.00
Non-Primary Residential: single-family and individual condominium units:  $250.00
Multifamily Residential: condominium and other buildings:  $250.00
Non-Residential:  $250.00