On Nov. 1, FEMA issued final rule on flood insurance installment plan
FEMA issued final rule on National flood insurance program installment payment plan.
Amends 44 CFR 61 and 44 CFR 62 on national flood insurance program (NFIP) policies.
Background
National flood insurance program (NFIP) is a voluntary program to purchase flood insurance on properties that are located in a community that participates in the NFIP.
Communities can participate in the NFIP by adopting and enforcing a set of minimum floodplain management requirements in order to reduce future flood damages.
Amendments
Revises NFIP's regulations by offering policyholders the option of paying annual flood insurance premium in monthly installments, reducing barriers to purchasing insurance.
Option to pay in installments increases policyholders' budgetary flexibility, alleviating cash flow pressure, deferred payment can be used to address other monthly needs.
Amends 44 CFR 61 by removing the full payment of policy premium requirement for the issuance or renewal of flood coverage as conflicts with installment plan option.
Also amends 44 CFR 62 to explain that the Write your own program companies must offer premium payment plans under the terms prescribed by the FEMA administrator.
Effectiveness
The final rule becomes effective on Dec. 31, 2024.
Nov. 4, 2024 FEMA Updated Website
On Nov. 4, 2024, FEMA updated its website to add NFIP installment plan FAQs.
FAQs addressed what installment plans are, who is eligible, if there will be payment fees, when plans will go into effect, and how to begin paying via installment plans.
Document dated Nov. 4, 2024, was received on Nov. 21, due to a fixed feed.
Regulators
FEMA
Entity Types
Ins
Reference
FAQ, 11/4/2024; 89 FR 87299, 11/1/2024; Docket ID FEMA-2024-0030; RIN 1660-AB16; Citation: *44 CFR* 61, 62;
