Changes to the National Flood Insurance Policy will become effective on October 1, 2013; during this time there will be a number of chances to the current policy. Below are some of the new policies:
- For those who have policies written or renewed after October 1, 2013, will see on average a 10% increase on their premiums
- A Reserve Fund Ratio will be applied to each National Flood Insurance Policy (NFIP), expect for Preferred Risk and Group Flood policies. The reserve fund ratio accounts for about 5% of your total premium.
- The Federal Policy Fee will also increase for policies written or renewed after the October deadline. For Non-Preferred risk policies, it will increase from $40 to $44, and for Preferred risk policies, it will increase from $20 to $22.
- For those who are in a flood hazard area, and do not have flood insurance, there is now a 30 day waiting period. The NFIP has now eliminated the no waiting period due to lender requirement.
- The preferred risk policies issued under extension program, will now see an annual increase of 20%.
- The pre-firm will see an increase of 25% above the rates, in effect on or after October 1, 2013.
- For Properties in flood hazard areas and Zone D, who have policies that are lapsed or new, will not receive an extension of subsidy.
For more information on these new updates to the Flood Insurance Policy, please contact Columbia Insurance at 781-598-5000. Our associates will be able to get you the policy you are looking for, before these changes come into effect in October 2013.