Flood insurance is vital to the New Jersey communities independent agent Jeffrey Wyrsch serves. But “ongoing changes to the NFIP, along with the emerging private flood marketplace, create new challenges on a regular basis,” he says.
On Monday, FEMA issued a bulletin stating that consumers cannot receive a refund for unearned premiums if they cancel a NFIP policy mid-term in favor of a private policy.
On Monday, FEMA announced significant changes to the way the NFIP will charge homeowners for flood insurance risks.
On Wednesday, Chris Heidrick, chair of the Big “I” Flood Insurance Task Force, testified before the U.S. House of Representatives Financial Services Committee on reauthorization of the NFIP.
The budget proposal includes $26 billion in cuts to the FCIP and proposed means-testing for the NFIP.
Earlier this week, the Big “I” and other stakeholders sent a letter to FEMA asking for clarification on when consumers can receive a refund for unearned premiums if they cancel an NFIP policy mid-term in favor of a private policy.
Last Friday, federal banking regulators issued a new rule outlining when lenders are required to accept private flood insurance to satisfy mandatory purchase requirements.
FEMA reversed its decision not to issue new or renewal policies or make changes to existing policies during the government shutdown.
Further guidance from the NFIP is expected, but for the time being, the NFIP will not issue new policies or make changes to existing policies.
If legislation to extend the NFIP fails to garner final approval at the last minute, it is unclear what will happen.
