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Tuesday, August 13, 2013

FEMA Provides Sample Letter for Renewal of Certain Subsidized Properties

Under the Biggert-Waters Act subsidized rates for some pre-FIRM properties, including Severe Repetitive Loss (SRL) properties, will be phased out beginning on October 1, 2013. Therefore, the premiums for flood insurance on affected properties will increase 25 percent each year until the premium reaches the full-risk rate.

In order to help communicate this change to policy holders, FEMA has released a Bulletin that provides a sample letter for "renewal of certain pre-FIRM subsidized policies for buildings that are Severe Repetitive Loss properties, repeatedly flooded with claims exceeding fair market value, or non-residential."

The sample letters would be sent to "affected policyholders, agents, and lenders in advance of the policy renewal date."

Read FEMA Bulletin W-13048