This week, FEMA released a bulletin to its private WYO flood insurance company partners on steps that are underway to begin the implementation of the newest flood law and to provide relief to qualifying policyholders who received rate increases under Biggert-Waters.

This action is the first step toward FEMA’s implementation efforts of the “Homeowner Flood Insurance Affordability Act of 2013,” which the Big “I” strongly supported. On March 21, President Obama signed the legislation into law, and the Big “I” has been eagerly awaiting dates and plans for implementation.

Specifically, the bulletin states that effective May 1, 2014, the NFIP and their WYO company partners will begin adjusting rates for all new applications for pre-FIRM properties by using the rate tables effective Oct. 1, 2013. Policyholders who meet the following requirements will see their rates restored to pre-FIRM subsidized rates, unless the full-risk rate is more favorable, when they purchase or renew their policy: pre-FIRM properties that were not insured on July 6, 2012 (the date when Biggert-Waters was enacted); pre-FIRM properties that were sold on or after July 6, 2012; and pre-FIRM properties that were rated full risk under Biggert-Waters due to a lapse in policy coverage.

FEMA announced that the use of the October 2013 rate tables are an interim step while FEMA develops new rate tables and guidance to process and issue refunds for policyholders who were charged full-risk premiums under Biggert-Waters and who are now eligible for pre-FIRM subsidies. The Big "I" will continue to work with FEMA on implementation of this important flood insurance reform law and will communicate all major developments via its e-newsletters.

John Prible is Big “I” vice president of federal government affairs.