National Flood Insurance Program Changes You Need to Know About
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National Flood Insurance Program Changes You Need to Know About

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Most people don’t spend a lot of time thinking about flood insurance, but right now is a good time to do so for three specific reasons.


First, some recent research has shown that many more Americans than previously thought are at risk from flooding rivers. According to the report:

A groundbreaking new study, led by the University of Bristol, has found that 41 million Americans are at risk from flooding rivers, which is more than three times the current estimate—based on regulatory flood maps—of 13 million people.

See “New study finds flood risk for Americans is greatly underestimated”


Second, those in Midland, Bay City and other parts of Mid-Michigan will remember learning this lesson first-hand just last year, when flooding caused major damage throughout the Great Lakes Bay Region.


See “See how bad flooding was across Mid-Michigan following heavy rains”


See “What we know so far about the near-historic floods across Mid-Michigan”


Third, the National Flood Insurance Program (NFIP), which provides coverage to more than 5.2 million property owners across the country, recently announced some changes to its program.



Effective January 1, 2019

•  Preferred Risk Policy (PRP) premiums will increase 8%, with a total increase of 6%. A PRP applies to properties not in a Special Flood Hazard Area (SFHA), which are areas with a high flood risk. PRPs are relatively inexpensive.


•  Properties that have been newly mapped into an SFHA will see premium increases of 15%, with a total increase of 11%. Newly mapped policies are initially charged PRP premiums, but then pay increases based on a “multiplier” that varies by the year of the map change.



According to the NFIP, for policies issued on or after April 1, 2018, there will be no changes to:


•  Deductible factors

•  The Federal Policy Fee

•  The Reserve Fund Assessment

•  The Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) Surcharge

•  The Probation Surcharge


For even more information, see “National Flood Insurance Program: Making Sense of April 2018 Changes” and “NFIP changes.”


Not sure of your current floor protection or how these changes apply to you?


Contact Saginaw Bay Underwriters today – we’d be happy to help!



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