There is a lot of talk lately about the new changes to the National Flood Insurance Program (NFIP).

Local attorney Russell Yagel from Hershoff Lupino & Yagel, L.L.P. has been kind enough to provide this summary:

Summary of rate changes being implemented under the NFIP
Russell Yagel / Hershoff Lupino & Yagel, L.L.P. 


Already underway:
  • Full-risk rates now are being applied to newly purchased property, to property not previously insured, and to policies that are re-purchased after a lapse.
  • Premiums for older (pre-FIRM) non-primary residences in Special Flood Hazard Areas will increase by 25% annually until they reflect the full-risk rate.

Beginning October 2013,

  • Premiums for pre-FIRM business properties, severe repetitive loss properties (1–4 residences), and properties on which claims payments exceed fair market value will increase by 25% annually until they reflect the full-risk rate.
  • Routine rate revisions will include a 5% assessment to build a catastrophic reserve fund.

Anticipated late in 2014,

  • Premiums for properties affected by map changes will increase by 20% each year to reach full-risk rates.

Who won’t be affected:

  • Owners of primary residences in SFHAs (Special Flood Hazard Areas) will keep the subsidized rates until the home is sold; the policy is allowed to lapse; a new policy is purchased; or a string of severe losses is experienced.
  • Post-FIRM rates for all zone classes will be unaffected by Section 100205 of the Biggert-Waters Act.
Thank you, Russell Yagel for providing this informative summary.

To contact Russell Yagel:
Hershoff Lupino & Yagel, L.L.P.
90130 Old Highway
Tavernier, Florida 33070