Important changes are coming to the National Flood Insurance Program (NFIP) in April. Most of what is different has to do with flood insurance pricing.
• Premiums will rise an average of 6.3%
• Primary residence premiums will go up 5%
• Non-primary residence premiums are rising 24%
• Deductibles won’t change
• HFIAA surcharges won’t change
• The federal policy fee won’t change
If you need more information the NFIP has a guide for agents online called Making Sense of April 2017 NFIP Changes. Click here to access the guide.
Cynthia DiVincent is a vice president at Aon National Flood Services. She said agents need to understand these increases because they’re going to get calls when their clients see the increases and they need to have answers.
And she — like many involved in the business of selling flood insurance — is concerned about the renewal of the NFIP. “Obviously, the industry is looking for Congress to act sometime before September 30 to pass legislation for a long term, and what we hope would be a timely reauthorization,” she said.
DiVincent said they want a minimum of five years reauthorization to create market stability and hope reforms — like private flood insurance — will be part of the reauthorization. “If the reform encourages or facilitates growth in the private flood insurance market, we think that’s good for the program,” she said.
Source link: Insurance Business America