NDBA - North Dakota Bankers Association
11/13/2024 | Press release | Distributed by Public on 11/13/2024 09:47
FEMA Publishes Final Rule Allowing Monthly Payments for Flood Insurance Premiums
FEMA has issued a final rule that revises National Flood Insurance Program regulations to give policyholders the option of paying their annual flood insurance premium in monthly installments. This change is in line with the requirements of the Biggert-Waters Flood Insurance Reform Act of 2012, which mandates that FEMA provide policyholders who are not required to escrow their premiums with the flexibility to choose between annual or monthly payment options.
The new rule will take effect on Dec. 31, 2024.
Overall, the final rule removes the requirement that flood insurance applicants pay their full policy premium at the time of application and allows monthly installments; provides that FEMA will not issue or renew flood insurance unless the full premium is paid - either through a full annual payment or the first installment of a monthly payment plan, including any associated fees, surcharges or assessments; provides that if a claim is filed before a policyholder has completed all installment payments, the remaining premium balance must be paid before processing the claim; and requires any policyholder who fails to make all required installment payments to pay the entire premium in the next policy term.
FEMA explained that offering monthly payment options will help "reduce barriers to purchasing flood insurance," making it more accessible to homeowners and renters across the country. FEMA created a FAQ page to answer policyholder questions.
To read more, visit: https://www.federalregister.gov/documents/2024/11/01/2024-25213/national-flood-insurance-program-installment-payment-plan
To view the FAQ, visit: https://www.fema.gov/fact-sheet/installment-plan-faqs#:~:text=Installment%20plans%20will%20be%20offered,via%2012%20monthly%20installment%20payments
The new rule will take effect on Dec. 31, 2024.
Overall, the final rule removes the requirement that flood insurance applicants pay their full policy premium at the time of application and allows monthly installments; provides that FEMA will not issue or renew flood insurance unless the full premium is paid - either through a full annual payment or the first installment of a monthly payment plan, including any associated fees, surcharges or assessments; provides that if a claim is filed before a policyholder has completed all installment payments, the remaining premium balance must be paid before processing the claim; and requires any policyholder who fails to make all required installment payments to pay the entire premium in the next policy term.
FEMA explained that offering monthly payment options will help "reduce barriers to purchasing flood insurance," making it more accessible to homeowners and renters across the country. FEMA created a FAQ page to answer policyholder questions.
To read more, visit: https://www.federalregister.gov/documents/2024/11/01/2024-25213/national-flood-insurance-program-installment-payment-plan
To view the FAQ, visit: https://www.fema.gov/fact-sheet/installment-plan-faqs#:~:text=Installment%20plans%20will%20be%20offered,via%2012%20monthly%20installment%20payments