The deadline for the new reform and subsequent premium increases is October 1, 2013. Any policy that was written or renews after October 1, 2013 will face the new rate changes. Any policy was written or renews before October 1, 2013 will not face any increased rates until the next renewal.
Generally speaking, the NFIP is implementing a 10% premium increase across the board. In very special circumstances, some premiums will increase 25% as of Oct. 1, 2013. These special cases included, but are not exclusive to:
- non-primary/non-principal residences
- Severe Repetitive Loss (SRL) properties
- Properties that have incurred flood-related damages in which the cumulative amount of the NFIP claim payments exceeded the fair market value of the property (as a subset of SRL properties)
- Business Properties
For people who carry Preferred Risk Policies (PRP), a general 10% premium increase will be issued on Oct. 1, 2013.
If you have any questions or concerns, please contact Fearnow Insurance immediately. We have trained and licensed professionals ready to answer all of your questions!