Big "I" Flood

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In above and outside of the NFIP!



mportant - NFIP Program Changes Effective April 1, 2016

Over the past several years, the National Flood Insurance Program (NFIP) has undergone many changes. From the implementation of the Biggert-Waters Flood Insurance Reform Act (BW12) in 2012 to the Homeowners Flood Insurance Affordability Act (HFIAA) introduced in 2014, much work has been done in an effort to stabilize the NFIP without heavily impacting policyholder pricing.

Selective strives to keep agents informed of these changes, to ensure they’re prepared to service mutual customers and consult with potential prospects. Below is a high-level summary of the most recent changes, which take effect April 1, 2016. Click here to access the full bulletin.

Fee Increases
 Federal policy fee increases:

  • PRP policies: from $22 to $25
  • Standard policies: from $45 to $50
  • RCBAP: varies depending on the number of units within the building
 PRP reserve fund assessment fee increases: from 10% to 15%

Rate Increases
 Review the full bulletin for all scheduled rate changes by flood zone
 25% rate increase for certain Pre-FIRM subsidized policies:

  • Non-Residential Business properties (this does not apply to Other Non-Residential properties which can be identified by completing the business use questionnaire)
  • Non-Primary residences
  • Severe Repetitive Loss properties
  • Substantially damaged/improved properties

Pre-FIRM Subsidized
–  FEMA is eliminating subsidies for certain Pre-FIRM properties that lapse and are reinstated after 90 days 

from expiration or when the lapse occurred while the property was subject to the mandatory purchase provision

–  Buildings with subsidized rates that lapse for more than 90 days will have full risk rates applied and are subject to a 30-day wait

–  Properties that have been in the private market for more than 120 days after NFIP coverage expired will have full risk rates applied

Note: to help streamline identification of impacted policies, additional questions have been added to the application

Newly Mapped Program

–  Properties will no longer be eligible for the Newly Mapped program/rates if:

  • The NFIP policy has lapsed more than 90 days after expiration - this applies if the coverage is with the same or a different NFIP insurer

  • The property is not covered by the NFIP as of 3/31/2016 and was newly mapped into a Special Flood

  • Hazard Area (SFHA) by a Flood Insurance Rate Map (FIRM) revision between 10/1/2008 and 4/1/2015

Note: Post-FIRM properties newly mapped into an SFHA between 10/1/2008 and 03/31/2015 and not covered under the NFIP as of 3/31/2016 may qualify for built-in-compliance grandfathering rates. Pre-FIRM properties newly mapped into a SFHA between 10/1/2008 and 03/31/2015 and not covered under the NFIP as of 3/31/2016 may qualify for Pre-Firm subsidized rates.


 Properties newly mapped as of 4/1/2015 have 12 months after the FIRM map revision date to obtain coverage in the Newly Mapped program (after 12 months these properties will be placed in the standard flood program).

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