Changes in the Flood Insurance Program

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Important changes to the National Flood Insurance Program (NFIP) take effect on October 1, 2009. If you already have a flood policy, nothing will change until your policy comes up for renewal. For new policies and at renewal time, these changes will mean an increase in rates, a higher deductible amount and an increase the basic coverage limits.
 
Here’s an explanation of the changes:
  1. Rates will increase by a national average of 8 percent and will depend on your flood zone. People living in the highest risk areas will experience the biggest increases.
  2. Standard deductibles will double. If you had a $500 deductible, it will become a $1,000 deductible at renewal. Those with a $1,000 deductible will see it raised to $2,000, and they have the option to buy back the $1,000 deductible for a higher premium within 60 days of the policy renewal date.
  3. The maximum amount of coverage you can buy from the NFIP has not changed, but the minimum amount of coverage (basic coverage) has increased. 
For more information on the NFIP, here’s a list of frequently asked questions.