Summary of NFIP Program Changes
by Matt Lehn
The National Flood Insurance Program (NFIP) just announced
changes effective April 1, 2018 and January 9, 2019. The changes outlined below
apply to new business and renewals that will become effective on or after April
1, 2018. The premium changes for Preferred Risk Policies (PRPs) and Newly
Mapped procedure policies will become effective January 1, 2019.
Premium Increases and Surcharges
Average increase of 8%. These amounts do not include the
HFIAA surcharge or the Federal Policy Fee (FPF).
For policies issued on or after April 1, 2018, there will be
no changes to:
Deductible Factors
Federal Policy Fee
Reserve Fund Assessment
HFIAA Surcharge
Probation Surcharge
ICC Premiums
Pre-FIRM Subsidized Policies (a group of policies in SFHA
Zones A, AO, AH, A1-30, AE, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A,
V1-30, and VE, that receive rates insufficient to pay the anticipated losses
and expenses for that group)
Other Pre-FIRM Subsidized Policies Not Subject to 25% Annual
Increases: These are primarily condominium policies and multifamily policies.
Premiums will increase 5%, with a total increase of 5%.
V Zones (coastal high-velocity zones)
Rate increases are being implemented again this year as a
result of the Heinz Center’s Erosion Zone Study, which clearly indicates that
current rates significantly underestimate the increasing hazard from steadily
eroding coastlines.
Post-FIRM V Zones: Premiums will increase 11%, with a total
increase of 11%.
A Zones (non-velocity zones, which are primarily riverine
zones)
Post-FIRM AE Zones: Premiums will increase 1%, with a total
increase of 1%.
AH, Zones (shallow flooding zones): Premiums will remain
unchanged.
X Zones (zones outside the Special Flood Hazard Area)
Standard-Rated Policies: Premiums will increase 2%, with a
total increase of 1%.
