NFIP October 2018 Changes
Bruce Bender, ASFPM Flood Insurance Committee Co-chair said, “As always, not many changes in the fall…but there are one or two big ones.”
An NFIP policy can now be canceled pro-rata and replaced by a private policy if FEMA gets a copy of the declaration page and a statement from a lender, if any, that says they are accepting it. Before this, you’d have to wait until renewal, he said.
“We still have the issue of FEMA counting it as a lapse if the insured decides to come back and get an NFIP policy the following year(s),” Bender said. “The other big one is a change in the Newly Mapped procedure rating option. Currently you have to get a Preferred Risk Policy within 12 months after the new map’s effective date to take advantage of this rating option. Now it is that OR within 45 days after a lender requests coverage (if it is outside that 12 month period). That lender notification period is 24 months.”
View the full bulletin here.