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NFIP June 2014 Program Changes
Due to the Biggert-Waters Flood Insurance Reform Act 2012 the NFIP will be implementing additional changes effective June 1, 2014 that will affect multi-family buildings.
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Changes to Maximum Coverage Limits
The maximum limits of building coverage available for non-condominium residential multi-family buildings (five or more units) will be increased to match the limits of commercial and other non-residential properties insured under the Standard Flood Insurance Policy (SFIP) General Property Form. This is an increase of available building coverage from $250,000 per building to $500,000.
The maximum contents coverage for all policies covering Other Residential buildings will remain $100,000 per policy.
>>Read the Program Changes Summary
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Deductible Changes
FEMA is revising the minimum deductibles for the NFIP. The changes to the minimum deductibles are available only for new business and renewal policies that are effective on or after June 1, 2014.
Deductable Changes for:
- Full-Risk Rated Policies
- Pre-FIRM Subsidized Policies
- Contents-Only Policies
>>Read the Program Changes Summary
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Is it Necessary to Increase the building coverage?
Evaluating your Property Policy
Send us the most current flood verbiage from your master property policy and we will evaluate:
- If the property policy defines the flood deductible as a percentage of the Total Insurable Value (TIV) for the location or building. Please note that we will need the current Statement of Values (SOV) in order to define the TIV, calculate the flood deductible and provide a valuable advice regarding the appropriate NFIP coverage.
- If the property policy defines the flood deductible as maximum NFIP limits. Please note that we will need to increase coverage to either the new limit ($500,000) or to the building RCV (if less than $500,000).
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Please note that we are unable to quote the cost of increasing coverage at this time since we are awaiting the official details from the NFIP.
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Sincerely,
Your CRIO Flood Team
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