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The Federal Emergency Management Agency (FEMA) published a news release providing information on the development of monthly installment payment plans for National Flood Insurance Program (NFIP) policyholders.
Currently, NFIP premiums can only be paid annually. This has been the option payment option for over 55 years. However, FEMA is in the process of developing a new option where policyholders can choose to pay monthly. Both new applicants and policyholders renewing their policy would have the option of paying their premium in monthly installments.
Any NFIP policyholder not required to escrow their premiums would be eligible for the installment plan. Whether the policyholder elects for the annual payment or monthly installment plan, they cannot change the choice during the policy term.
There are no additional fees assessed for choosing the monthly installment plan over the annual option. The policyholder would still pay the standard NFIP fees that are required by federal law, including fees, surcharges, and assessments. If on the monthly installment plan, those fees would be collected only on the first month, and every following payment would be premium only.
FEMA published the National Flood Insurance Program Installment Payment Plan to the Federal Register on November 1, 2024, which removed the regulatory barriers to offering an installment plan option. They are working toward making the option available as soon as possible and will provide more information when it is.
The news release can be found here.
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