FEMA Defers the Implementation of Risk Rating 2.0
WASHINGTON – FEMA is focused on building a culture of preparedness by closing the insurance gap so that individuals and communities recover faster and more fully after a natural disaster.
Earlier this year, FEMA announced Risk Rating 2.0 as an initiative to deliver flood insurance rates that people trust, value, and are less complex to navigate. Knowing the true risk of one’s property is critical to ensure adequate insurance coverage and claim payments after a flood, as well as to inform appropriate mitigation measures property owners can take to ultimately reduce their risk. While the agency initially announced that new rates for all single-family homes would go into effect nationwide on October 1, 2020, some additional time is required to conduct a comprehensive analysis of the proposed rating structure so as to protect policyholders and minimize any unintentional negative effects of the transition. Therefore, FEMA decided to defer the implementation of Risk Rating 2.0 by one year to October 1, 2021. Additionally, this extension allows for all National Flood Insurance Program (NFIP) policies – including, single-family homes, multi-unit and commercial properties – to changeover to the new rating system at one time instead of a phased approach, as originally proposed.
Over the course of the next year, FEMA will continue to actively engage with Congress and other key stakeholders to ensure transparency and visibility as we work to transform the NFIP.
NFIP Authority Extended Through November 21, 2019
President Trump signed a continuing resolution on Friday evening (9/27) which ensures funding of the government at current levels until midnight, November 21. Included in the resolution is an extension of the National Flood Insurance Program (NFIP). This extension provides lawmakers with funding for an additional two months of operations with the current NFIP. Lawmakers will continue to discuss ways to reform and reach a long term solution for the NFIP.
NFS addresses the top 5 questions regarding NFIP Reauthorization
August 23, 2019
Congress returns from recess on September 9, leaving only 15 legislative days until the current NFIP authorization ends. Cynthia DiVincenti — NFS Head of Government Relations addresses the Top 5 questions about NFIP Reauthorizaiton and how a lapse could impact your daily business.
NFIP Authority Extended through September 30, 2019
NFIP authority has been extended through September 30, 2019. Given the ongoing uncertainty surrounding the NFIP reauthorization, including a potential lapse in authority, we encourage Agents to submit their new applications, renewals and coverage endorsements as soon as possible.
Guidance on Future Lapse
As a reminder, the link below, is a bulletin published by FEMA December 15, 2017, providing further guidance should a future lapse to the NFIP authority occur. We will operate in compliance with these directives, or any additional direction provided by FEMA and will continue to provide updates as the information becomes available.
Key points to be aware of:
- New applications or endorsements to increase/add coverage dated on or after the date of the lapse in NFIP authority cannot be issued.
- Policies in-force prior to the lapse in NFIP authority remain in-force and any claims on in-force policies will be handled as usual.
- No renewal billing offers/notices can be issued during a lapse in NFIP authority. However, renewal payments received during a lapse in NFIP authority as payment on renewal billing offer/notices issued prior to the lapse, and paid within the 30-day grace period, can be renewed.
NFIP Cliff Notes
Published: Wednesday, May 1, 2019
Provides an easy to understand breakdown of all NFIP changes beginning October 2019. Including:
- Mandatory Reporting of National Producer Numbers (NPNs)
- Updates to Specific Rating Guidelines
- Changes effective January 1, 2020
Published: Tuesday, January 1, 2019
Provides an easy to understand breakdown of all NFIP changes beginning April 2019. Including:
- Premium increases
- Primary Residence Guidelines
- Additional Premium Charge for Severe Repetitive Loss
We make it easy to understand flood insurance for commercial properties by covering topics like:
- Building classifications
- The NFIP General Property Form
- Commercial Tenants Coverage