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Florida, Alabama and Tennessee |
By Wendy F Clark, Agent and owner of Priority-One Insurance
Looking at Flood
What to expect with the recent changes for the National Flood Insurance Program
The National Flood Insurance Program
(NFIP) just announced effective changes April 1, 2018 and January 9,
2019. Many of the changes apply to new
business and renewal that will come effective on or after April 1, 2018. The
Preferred risk policies (PRPs) and newly mapped procedure policies will become effective January 1, 2019.
What......Surcharges and Premium
Increases?
Look below for your zone.
Pre-Firm Subsized Policies ( a group of
policies in SFHA zones A, AO, AH, A1-30, AE, A99, AR AR/A1-30, AR/AE, AR/AH,
AR/A, V1-30, and VE, that receive rates insufficient to pay the anticipated
losses and expenses for that group)
Other Pre-FIRM Subsidized Policies Not Subject to 25%
Annual Increases: These are primarily condominium policies and multifamily
policies. Premiums will increase 5%, with a total increase of 5%.
V Zones (coastal high-velocity zones)
- Rate increases are going to be implemented again this year
as a result of the Heinz Center’s Erosion Zone Study, which clearly indicates
that current rates significantly underestimate the increasing hazard from
steadily eroding coastlines.
A Zones (non-velocity zones, which are primarily
riverine zones)
- Post-Firm AE Zones: Premiums will increase 1%, with a total increase of 1%.
- AH, Zones (shallow flooding zones): Premiums will remain unchanged.
X Zones (zones outside the special flood hazard area)
- Standard-Rated Policies: Premiums will increase 2%, with a total increase of 1%.
