FEMA Extends Grace Period for Flood Insurance Renewal Premiums
Due to the COVID-19 pandemic, the Federal Emergency Management Agency (FEMA) will be extending the grace period to renew flood insurance policies under the National Flood Insurance Program (NFIP) from 30 days to 120 days.
To avoid a lapse in coverage, there is typically a 30-day grace period to renew NFIP policies. However, due to the widespread economic disruption arising from this pandemic, FEMA has authorized an extension to allow additional time for policyholders who may be struggling financially to pay insurance premiums. The extension will also ensure that policies are not cancelled for nonpayment of premium due to circumstances beyond their control.
If a policy has an expiration date between Feb. 13, 2020 and June 15, 2020, then the NFIP insurer must receive the appropriate renewal premium within 120 days of the expiration date to avoid a lapse in coverage. Likewise, if a policyholder receives an underpayment notice dated between Feb. 13, 2020, and June 15, 2020, then the NFIP insurer must receive the additional premium amount requested within 120 days of the date of the notice.
Policyholders who need additional time to pay their premiums, beyond the 120-day extension, should contact their agent or insurer to inquire about other options the insurer may offer for premium payment.
This information provided by NAHB Now, March 30, 2020.