NFIP Monthly Payment Plan Rolling Out

In a move aimed at making flood insurance more accessible, the Federal Emergency Management Agency (FEMA) has announced plans to allow National Flood Insurance Program (NFIP) policyholders to pay their premiums in monthly installments rather than in a single annual lump sum. Traditionally, NFIP premiums have been due all at once each year — a requirement that many homeowners in flood-prone areas have found burdensome.

Many floodplain managers and advocates have been calling for payment flexibility, pointing to the financial strain a large annual bill can create, especially for lower-income households. This new rule is effective December 31, 2024

The new option, announced in the Federal Register on November 1, reflects a shift in FEMA’s approach to NFIP policies, which cover about 4.7 million properties across the United States. FEMA hopes that offering a monthly payment option will make flood insurance more manageable and potentially attract new policyholders who might otherwise risk going without coverage.

See the FAQ on the installment plan here.