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Private Market Flood Insurance

Effective May 1, 2014, all buyers of older properties (“pre-FIRM”) will see a premium rate reduction under the Homeowner Flood Insurance Affordability Act of 2014. 

Instead of jumping to “full cost” for flood insurance, buyers will assume the seller’s Oct-2013 rate for a pre-FIRM property.

NAR prevailed upon FEMA to implement this provision seven months early.  FEMA also extended the rate relief so all pre-FIRM properties

(including the second homes and businesses) will begin paying Oct-2013 rates when they purchase or renew their flood insurance after May 1, including:

• ALL buyers of a pre-FIRM property, not just those whose seller has an existing policy;


• ALL recent owners who apply for a new flood insurance policy on a pre-FIRM property;


• ALL recent owners who reinstate an old pre-FIRM policy that previously lapsed for any reason;


• ALL recent owners who renew a policy on a pre-FIRM property bought or newly insured after the 2012 Biggert-Waters law.

While expediting the rate relief, FEMA must still issue refunds to all those who paid more than their Oct-2013 rate. 

NAR will continue working with FEMA and Congress to quickly issue these refunds to anyone overcharged for flood insurance under Biggert-Waters.

NAR Flood Insurance Resources on the Web Private Market Flood Insurance

NAR Flood Insurance Webpage:

http://www.realtor.org/topics/national-flood-insurance-program-nfip

FEMA Bulletin W-14014 (dated April 15th): http://www.ksefocus.com/billdatabase/clientfiles/172/4/2003.pdf

FEMA Bulletin W-14016 (dated April 24th): http://www.ksefocus.com/billdatabase/clientfiles/172/4/2021.pdf

NAR Implementation Survey: https://survey.vovici.com/se.ashx?s=2D55F0781086FB83

NAR Frequently Asked Flood Insurance Questions:

http://www.realtor.org/topics/national-flood-insurance-program-nfip/homeowner-flood-insurance-affordability-act

NAR Legal Guidance on what to tell clients: http://www.ksefocus.com/billdatabase/clientfiles/172/4/1816.pdf