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FEMA Issues Interim Instructions for NFIP

As a result of the short-term reauthorization to July 31, 2012 that Congress has granted the National Flood Insurance Program (NFIP), the Federal Emergency Management Agency (FEMA) has been issuing a series of instructions
June 21, 2012

As a result of the short-term reauthorization to July 31, 2012 that Congress has granted the National Flood Insurance Program (NFIP), the Federal Emergency Management Agency (FEMA) has been issuing a series of instructions. The main body of these instructions can be found at: http://www.fema.gov/business/nfip/ - and we also advise members to also use:
http://www.fema.gov/pdf/nfip/manual201205/splashscreen.pdf.

The more permanent, longer-term solutions Congress is working on will include further reforms. However, this extension included removing the subsidies granted to properties built before 1972 and are categorized as “pre-FIRM” properties. The phase-out will take place over a four-year period, effective July 1, 2012, by raising rates 25 percent per year for what are considered second homes and/or vacation homes by the NFIP.

FEMA/NFIP updated the National Flood Insurance Program Flood Insurance Manual and the related Section: Severe Repetitive Loss Properties.

The attached iService bulletin advises that beginning with ALL NFIP policies new or renewed effective October 1, 2012 all severe repetitive loss (SRL) properties will be transferred to the NFIP Special Direct Facility. Further, all such policies for SRLs properties that are effective 10-01-12 and forward must be re-underwritten before they can be placed. This means completed applications and current documentation.

See the full NFIP bulletin on SRLs: WYO Program Bulletin W-12037 "Re-Underwriting of Severe Repetitive Loss Policies at the NIFP Special Direct Facility" (6/12/2012)

FEMA/NFIP is also going after any outstanding amounts due to FEMA/NFIP from former or current WYOs. All outstanding balances must be paid in full by July 31, 2012. At this time, FEMA/NFIP is not releasing the names of the former or current WYOs affected by this bulletin.

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