As a result of the Homeowners Flood Insurance Affordability Act (HFIAA), which repeals aspects of the Biggert Waters 2012 (BW12) premium increases, refund checks have begun to be issued for eligible policies.  Unlike typical National Flood Insurance Program (NFIP) refunds that are mailed to the Broker of Record (BOR), these refunds will be mailed directly to the insured.

The new law reinstates many of the subsidized rates that were previously eliminated and calls for refunds of the difference between the subsidized rates and the higher full-risk rates that policyholders were required to pay as a result of Biggert-Waters Act. The law calls for most rates to be capped at no more than 18 percent per year, resulting in more gradual rate increases.

FEMA set standard procedures for the issuance of the refunds to be strictly followed for all HFIAA Premium Refunds:

• Refunds were to be sent between Oct. 1, 2014 and Dec. 31, 2014.
• All Refund checks will be made payable to the insured and mailed directly to the insured regardless if payment was made by the lenders’ escrow account. Only refunds more than $1.00 will be sent by law.
• A refund will be sent with a cover letter and a revised declarations page showing the old & new premium.
• Lenders, if any, will also receive revised declarations page to adjust escrow accounts accordingly.

For more information, view FEMA fact sheets that provide an overview of the changes business owners should expect, including a one-time refund for some policyholders:

View PDF – HFIAA Refunds – FEMA Green Fact Sheet
View PDF – HFIAA  Flood Insurance for Business – Orange Fact Sheet