Be Sure to Opt In for Lower Flood Insurance Tuesday July 07, 2015 11:28 am

Make Sure You Pay the Correct Surcharge

As of April 1, 2015, every new or renewed NFIP policy includes an annual surcharge required by the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA). The surcharge amount depends on the use of your insured building and the type of policy insuring the building, regardless of its flood zone or date of construction. Primary residences will pay $25. 

If you or your agents don't fill out the paperwork proving that the structure is a primary residence, you will be charged $250 instead of $25.

Policies for owner-occupied, single-family detached buildings and individual condominium units that are your primary residence will include a $25 HFIAA surcharge. If you have a contents-only policy for a rental unit that is your primary residence, it includes the $25 HFIAA surcharge. Policies for all other buildings include a $250 HFIAA surcharge.

To ensure that you pay the correct surcharge at renewal, you must complete and return a Verification of Primary Residence Status form to your flood insurance provider, which will mail you the form before it issues the renewal notice. You are required to respond within 30 days of receipt.

To receive the $25 HFIAA surcharge, you or your agent must submit one of the following with the form:

• Drivers license
  
• Automobile registration
  
• Proof of insurance for a vehicle
  
• Voter registration
  
• Documents showing where children attend school
  
• Homestead Tax Credit form for primary residence
  

If the form and documentation are not received within the 30-day period, your renewal premium will reflect the $250 HFIAA surcharge.

If your policy is coming up for renewal soon and you have not received the letter and form, or if you have misplaced it, please contact your insurance agent.

The surcharge will be kept in a reserve created to ensure that the National Flood Insurance Program can pay all flood claims after disasters without going into debt. FEMA states that this surcharge will offset subsidized policies still paid by structures built before the Flood Insurance Rate Maps were adopted for that jurisdiction.