ASFPM Association of State Floodplain Managers


FEMA providing guidance on how to adjust rates for certain Pre-FIRM properties

Apr 16, 2014 | News & Views, What's New

FEMA Intergovernmental Affairs Advisory

April 15, 2014

Homeowner Flood Insurance Affordability Act (HFIAA)
Implementation of Section 3 –
Repeal of Certain Rate Increases

President Obama on March 21 signed the Homeowner Flood Insurance Affordability Act of 2014 into law. This law repeals and amends certain provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and the National Flood Insurance Act of 1968.

On April 15, the National Flood Insurance Program provided a bulletin to its private Write Your Own insurance company partners on steps that are underway to begin implementation of the new legislation and provide relief to qualifying policyholders who received rate increases under Biggert-Waters. This action begins to implement Federal Emergency Management Agency’s first priority to stop policy increases for certain subsidized policyholders as outlined in the Act.

Specifically, the bulletin provides guidance to WYO insurance companies on how to adjust rates for certain Pre-Flood Insurance Rate Map properties as described by Section three of the Act. Pre-FIRM properties are properties that typically were built before detailed flood maps were developed with a community. Prior to implementation of Biggert-Waters, Pre-FIRM properties were insured using subsidized rates that assist people in affording flood insurance even though their buildings were not built to present standards.

Effective May 1, 2014, the NFIP Direct Servicing Agent and WYO companies will begin to adjust rates for all new applications for Pre-FIRM properties by using the rate tables issued effective Oct. 1, 2013. Policyholders who meet the following requirements will see their rates restored to Pre-FIRM subsidized rates, unless the full-risk rate is more favorable, when they purchase or renew their policy:
o Pre-FIRM properties that were not insured on July 6, 2012 (the date when Biggert Waters was enacted);
o Pre-FIRM properties that were sold on or after July 6, 2012 (the date when Biggert Waters was enacted); and
o Pre-FIRM properties that were rated full-risk under Biggert Waters due to a lapse in policy coverage.

The use of the October 2013 rate tables are an interim step while FEMA develops new rate tables and guidance to process and issue refunds for policyholders who were charged full-risk premiums under Biggert Waters and are now eligible for Pre-FIRM subsidies.

FEMA looks forward to working with Congress, the private WYO insurance companies, and other stakeholders to implement these congressionally-mandated reforms and to working toward our shared goals of helping families maintain affordable flood insurance, ensuring the financial stability of the NFIP, and reducing the risks and consequences of flooding nationwide.

If you have any questions, please feel free to contact FEMA’s Intergovernmental Affairs Division at (202) 646-3444 or at