National Flood Insurance Program Changes Effective October 1, 2009

The Federal Emergency Management Agency (FEMA) has announced a series of changes to the National Flood Insurance Program. These changes will effect both new and renewal business.

What’s Changing:

• Rate Increase: Premiums will increase an average of 8% for policies written or renewed on or after October 1, 2009 in all zones.
• Standard deductible changes: Change in deductibles for Pre-FIRM and Post-FIRM coverages. The NFIP is discontinuing the $500 deductible for all properties.
  • Post-FIRM properties: The standard deductible increases from $500 to $1,000.
  • Pre-FIRM properties: The standard deductible increases from $1,000 to $2,000.
  • Deductibles buyback to $1,000 still available.
• Basic coverage limits: The basic coverage limits are increasing for all categories of building and contents coverages as follows:
  • 1-4 Family Dwelling Building Coverage: Basic limit increases from $50,000 to $60,000.
  • Other Residential and Non-Residential Building Coverage: Basic limit increases from $150,000 to $175,000.
  • Residential Contents Coverage: Basic limit increases from $20,000 to $25,000.
  • Non-Residential Contents Coverage: Basic limit increases from $130,000 to $150,000.
• Unnumbered A Zone: Pre-FIRM buildings in an unnumbered A zone with a basement, enclosure or crawlspace may use Post-FIRM rates if the rates are more favorable to the insured. Applies to both new and renewal business.
• New Building Types: Two new building types have been added: elevated on crawlspace and non elevated building with subgraded crawlspace.
• Underwriting Forms: Changes have been made to the flood insurance application, PRP application and change endorsement forms which will now capture community, building and construction information. View application here.
• Elevation Certificates: Two new diagram numbers have been added:
  • Diagram number 1B:  All raised slab on grade or slab on stem wall with fill; single and multiple floor buildings (other than split-level), either detached or row type (e.g. townhouses): with or without attached garage.

o    Diagram number 9: All buildings (other than split-level) elevated on a sub grade crawlspace, with or without attached garage.