FEMA has announced that refunds will be issued for consumers covered by flood protection
The Federal Emergency Management Agency has announced that refunds for those that have overpaid their flood insurance premiums will begin being delivered this week. These refunds are part of federal action that has modified a law that was enacted in 2012. The law had initially put an end to subsidies being offered by the federal government, but revisions to the law have reinstated these subsidies, and has also authorized the issuance of refunds from the Federal Emergency Management Agency.
Those that have seen their insurance rates grow by more than 18% will receive a refund
Refunds will be available to homeowners that saw premiums for their flood insurance coverage grow by 18% or more. Insurance rates are not meant to climb over 18% per the provisions of the Flood Insurance Affordability Act, which was signed into law on March 21 of this year. Those that had their rates increase by more than 18% will receive refunds from the Federal Emergency Management Agency.
For some, refunds could take longer to process than for others
Refunds will begin being issued to policyholders this week, but some will not see their refunds come until the end of the year. This is because some refunds are being handled by the private insurance companies that offer flood coverage through the federal National Flood Insurance Program. It will take longer for some insurers to process refunds than it will take others, and refunds must also be funneled through the Federal Emergency Management Agency, which will introduce a degree of bureaucracy to the process.
Majority of policyholders will not be receiving refunds
The vast majority of flood insurance policyholders did not see an increase of more than 18% in their premiums. Of the 5.5 million people receiving coverage through the National Flood Insurance Program, approximately only 1 million people will be receiving refunds. These refunds are expected to be delivered in numerous ways. For some people, refunds may be issued as credit for their insurance policies, effectively lowering or eliminating the premiums they have to pay for a certain time.