The Federal Emergency Management Agency (FEMA) recently announced changes to the National Flood Insurance Program (NFIP) that will go into effect on April 1, 2017. These changes are made annually, and may impact your home’s flood insurance premiums—especially if it is newly mapped into a Special Flood Hazard Area (SFHA).
FEMA’s changes include two main considerations for homeowners:
- Increased premiums: FEMA has estimated that flood insurance premiums will rise by an average of 6.3 percent in 2017. The agency has also capped premium increases at 15 to 18 percent annually for homes in most risk classes. FEMA believes that the increased premiums will help to make more funds available for reimbursement in the event of flood damage.
- Newly mapped flood areas: Local flood maps are changed regularly to reflect changes in geography and weather patterns. If your home is mapped into an SFHA, you will be required to purchase flood insurance.
However, if your home is newly mapped into such an area, you will receive a preferred risk policy premium for the first year you are mapped into the SFHA. If your home is mapped into an SFHA for multiple years, your annual premiums will be adjusted based on a multiplier that is determined by your area’s flood risk.
For more information on your flood insurance needs, or for resources to protect your home from flooding, call your Marshall & Sterling representative today.