National Flood Insurance Program
April 1, 2015, Program Changes: A Summary
This bulletin implements more of the required changes to the rate structure and some of the
business practices with the NFIP as a result of the Homeowner Flood Insurance Affordability
Act (HFIAA) and Biggert-Waters 12 (Biggert-Waters). Key changes in the bulletin include:
• Implementation of the first annual rate change that sets rates using rate increase
limitations set by HFIAA, for individual premiums and rate classes:
– Limiting premium increases for individual premiums to 18 percent premium;
– Limiting increases for average rate classes to 15 percent; and
– Mandatory increases for certain subsidized policyholders under Biggert-Waters and
• Increasing the Reserve Fund assessments required by Biggert-Waters.
• Implementation of the annual surcharges required by HFIAA.
• Guidance on substantially damaged and substantially improved structures and additional
rating guidance on Pre-Flood Insurance Rate Map (FIRM) structures.
• Implementation of a new procedure for Properties Newly Mapped into the Special Flood
Hazard Area and existing Preferred Risk Policy Eligibility Extension (PRP EE) policies.
The premiums will be the same as the Preferred Risk Policy for the first year (calculated
before fees and assessments) to comply with provisions of HFIAA.
• Reformulation of expense loading on premiums, reducing the expense load on the
highest risk policies as an interim step while investigating expenses on policies as
required by Biggert-Waters.
The changes outlined in this bulletin will take effect on April 1, 2015, for new business and
renewals beginning April 1, 2015.