Here’s a brief summary of upcoming changes outlined in the attached FEMA Write Your Own (WYO) Bulletin dated October 1, 2020.
To learn more, please read the Memorandum.
Changes Effective April 1, 2021
Pre-FIRM Subsidized Policies (a group of policies in Special Flood Hazard Area (SFHA) Zones A, AO, AH, A1-30, AE, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, V1-30, and VE, that receive rates insufficient to pay the anticipated losses and expenses for that group)
- Primary Residences: The combined premium increase for all primary residence policies in these zones is 7.7 percent, with a total amount billed increase of 7.3 percent.
- Pre-FIRM Subsidized Policies Subject to 25 Percent Annual Premium Increases: The increases in both the average premium and the average amount billed for each of the four following categories are as shown:
- Non-Primary Residences: Premiums will increase 24.9 percent, with a total amount billed increase of 23.5 percent. ◦ Business Policies: Premiums will increase 25.0 percent, with a total amount billed increase of 24.2 percent.
- Severe Repetitive Loss (SRL) Properties: Premiums will increase 24.9 percent, with a total amount billed increase of 24.3 percent.
- Substantially Improved Properties: Premiums will increase 24.8 percent, with a total amount billed increase of 24.0 percent.
V Zones (coastal high-velocity zones)
FEMA is implementing rate increases again this year as a result of the Heinz Center’s Erosion Zone Study, which clearly indicates that current rates significantly underestimate the increasing hazard from steadily eroding coastlines.
- Post-FIRM V Zones: Premiums will increase 0.3 percent, with a total amount billed increase of 0.3 percent.
A Zones (non-velocity zones, which are primarily riverine zones)
- Post-FIRM A1-A30 and AE Zones: Premiums will increase 1.7 percent, with a total amount billed increase of 1.4 percent.
- Post-FIRM AO, AH, AOB, and AHB Zones (shallow flooding zones): Premiums will increase 3.4 percent, with a total amount billed increase of 2.7 percent.
- Post-FIRM Unnumbered A Zones (remote A Zones where elevations have not been determined): Premiums will increase 1.7 percent, with a total amount billed increase of 1.5 percent.
X Zones (zones outside the Special Flood Hazard Area)
- Standard-Rated Policies: Premiums will increase 1.4 percent, with a total amount billed increase of 1.3 percent.
SRL Premium
- For policies effective on or after April 1, 2021, FEMA is increasing the SRL Premium to 15 percent for all policies covering properties with an SRL designation.
Miscellaneous
- Tentative and Provisional Rates: No change.
- Mortgage Portfolio Protection Program (MPPP) Policies: No change.
Changes to Become Effective January 1, 2022
- Preferred Risk Policies (PRPs): Premiums will increase 15.0 percent, with a total amount billed increase of 13.0 percent.
- A99 and AR Zone Policies eligible for the PRP: Premiums will increase 15.0 percent, with a total amount billed increase of 13.0 percent.
- Properties Newly Mapped into the SFHA: Premiums will increase 15.0 percent, with a total amount billed increase of 12.9 percent.