Flood Insurance Changes


Changes Take Place June 1, 2014

As of June 1, 2014, The National Flood Insurance Program (NFIP) will be implementing a number of changes in accordance with Section 100204 of

the Biggert-Waters Flood Insurance Reform Act of 2012.

1. CHANGE TO MAXIMUM COVERAGE LIMITS

The maximum limits of building coverage available for non-condominium residential buildings designed for use for five or more families (classified as Other Residential buildings by the NFIP) will be increased to match the limits of commercial and other non-residential properties insured under the Standard Flood Insurance Policy (SFIP) General Property Form.

 

THIS IS AN INCREASE OF AVAILABLE BUILDING COVERAGE FROM $250,000

PER BUILDING TO $500,000.

 

2. REVISED PRIMARY RESIDENCE DEFINITION

Effective June 1, 2014, the NFIP will begin defining primary residence to be a building that will be lived in by the insured or the insured’s spouse for more than 50 percent of the 365 days following the policy effective date.

 

3. DEDUCTIBLE CHANGES

FEMA is revising the minimum deductibles for the NFIP. The changes to the minimum deductibles are available only for new business and renewal policies that are effective on or after June 1, 2014.

 

4. MAXIMUM COVERAGE AVAILABILITY

The total and aggregate liability for a non-residential building or non-condominium building designed for 5 or more families is $500,000 per structure to be paid to the building owner. The law also reiterates that the maximum coverage available for a residential 1-4 family building or condominium unit is $250,000 per policy.

 

There are nine total changes that will become effective June 1, 2014

*Information provided by Franklin Street Insurance

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